On what page number of the Chatime Franchise Agreement can information about Guarantee and Indemnity be found for Chatime?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Introduction
- D In consideration of Franchisor complying with Guarantor's request, Guarantor has agreed to give a guarantee and indemnity to Franchisor for the performance of Franchisee's obligations under this Agreement.
9.8 Disgorgement
In addition to all other remedies and rights of Franchisor under this Agreement, if any of Franchisee, Guarantor, or their Interested Parties breaches clause 9.2 or 9.3, Franchisee must account for and pay to Franchisor all compensation, profits, monies, accruals, increments, or other benefits derived or received as a result of any such breach.
10 Indemnity and Limitation of Liability
10.1 Indemnity
- (1) Franchisee Parties indemnify Franchisor and each of its Affiliates (Chatime Group) against all:
- (a) Losses incurred by the Chatime Group;
- (b) Liabilities incurred by the Chatime Group; and
- (c) All Legal Costs and other Costs and expenses incurred by the Chatime Group in connection with a demand, action, arbitration, or other proceeding (including mediation, compromise, out of court settlement or appeal),
arising directly or indirectly as a result of or in connection with:
- (d) A breach by Franchisee Parties of this Agreement or any Collateral Agreement;
- (e) Any injury to, or loss of property of, any person in or on premises from which the business is conducted;
- (f) Franchisee's taxes, liabilities or Costs of The Franchised Business;
- (g) Any negligent or willful act or omission of Franchisee, its employees, agents, servants, or contractors; and
- (h) Any warranty, promise, or representation made by Franchisee Parties or any employee, agent, or other person acting on behalf of Franchisee Parties being incomplete, inaccurate, or misleading.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
Based on the 2025 Chatime Franchise Disclosure Document, information regarding Guarantee and Indemnity can be found within the agreement's introductory sections and clauses related to indemnity and liability. Specifically, the introduction to the agreement mentions the guarantor's role in providing a guarantee and indemnity to Chatime for the franchisee's obligations. Additionally, clause 10 outlines the indemnity provided by the franchisee parties to Chatime Group, covering losses, liabilities, and legal costs arising from breaches of the agreement, injuries on the premises, franchisee's taxes, negligence, and misleading representations.
This means that if a prospective Chatime franchisee is entering into an agreement that requires a guarantor, the guarantor is agreeing to ensure the franchisee meets all obligations. This could be a significant consideration for the guarantor, as they become responsible for the franchisee's debts and actions related to the Chatime business.
Furthermore, the franchisee is required to indemnify Chatime against various potential issues, including breaches of contract, injuries occurring at the business location, and any negligence on the part of the franchisee or their employees. This highlights the importance of franchisees maintaining adequate insurance and adhering to all operational standards to minimize potential liabilities. The franchisee should seek legal counsel to fully understand the implications of these clauses before signing the agreement.
While the FDD excerpts do not specify exact page numbers, they indicate that these topics are addressed in the introductory sections and within clause 10 of the franchise agreement. A prospective franchisee should carefully review these sections with their legal advisor to fully understand their obligations and potential liabilities.