What page number in the Chatime Franchise Agreement discusses Grant of Rights and Development Obligations?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
2 Grant of Rights and Development Obligations
2.1 Grant of Rights for Initial Term
- (1) Franchisor grants to Franchisee and Franchisee accepts the right to use the Intellectual Property in the conduct of the Franchised Business at the Premises for the Initial Term, subject to the terms and conditions of this Agreement.
- (2) Franchisee may itself own or operate one and only one Outlet in the Territory and only at the Premises.
- (3) The rights granted to Franchisee pursuant to this Agreement are limited to the Premises and apply only for the Initial Term. Franchisee acknowledges and agrees that it is not being granted any rights to franchise and that it will not operate or grant Franchises, nor solicit prospective franchisees, whether in or outside the Territory.
2.2 Designated Territory
(1) During the term of the Franchise, we will not establish or operate, or grant any person other than you the right to establish or operate, a Chatime Store at any location in the Territory, except as may be provided in Section 2.3.
2.3 Rights Retained by Franchisor
(1) Franchisor, on behalf of itself and its Affiliates, retains all rights with respect to Outlets, the Intellectual Property and the sale of Raw Materials and other Products and any other products and services, anywhere in the world including, without limitation, the rights to:
- (a) operate or grant others the right to operate Outlets under or in association with the Marks or any other trademarks or service marks at such locations outside the Territory, and on such terms and conditions as Franchisor, in its sole discretion, deems appropriate;
(b) provide, franchise, license, sell, distribute and market any services or products (under any brand, including but not limited to our Marks) through any Special Distribution Channels, in or outside your Territory, including, without limitation, through airports, train stations, hotels, convention centers, sport complexes, hospitals, or festivals.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
Based on the 2025 Chatime Franchise Disclosure Document, the Grant of Rights and Development Obligations are discussed in Section 2 of the franchise agreement. However, the provided excerpts from Item 23 do not specify the page number where this section begins.
Section 2 outlines the rights granted to the franchisee for operating a Chatime store, including the use of intellectual property and the territory in which they can operate. It also details the development obligations that the franchisee must meet during the initial term of the agreement. These obligations typically involve opening and operating a certain number of Chatime outlets within a specific timeframe.
The FDD excerpts also highlight the rights retained by Chatime, including the ability to operate or franchise outlets outside the franchisee's designated territory and through alternative distribution channels. This section also addresses the franchisee's responsibilities to promote the Chatime brand and maintain standards.
To find the specific page number for this section, a prospective franchisee should review the full Chatime Franchise Agreement or ask the franchisor directly for clarification. Knowing the exact location of this section is crucial for understanding the franchisee's rights and obligations under the agreement.