Who qualifies as an 'Interested Party' according to the Chatime franchise agreement?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
estrained Business; and
- (d) procure, employ, seek to employ or engage, or appoint in any capacity (whether as a consultant, director or otherwise), any person who is or has been in the 12 months
prior to such action an employee, independent contractor, or prospective franchisee of the Franchisor, its affiliates, or any Chatime Store Business.
(e) These restraints shall not apply to the Developer's or its affiliates' continued operation of individual Chatime Stores being operated under valid Franchise Agreement, which have not been terminated and are not in default.
7.3 Restraint Applies to Conduct in Any Capacity
The agreement by Developer Parties in clause 7.2 applies to any of them, the Interested Parties, and those acting:
- (1) In partnership or association with another person;
- (2) As principal, agent, representative, director, officer, employee, or financier;
- (3) As member, shareholder, debenture holder, note holder, or holder of any other security;
- (4) As trustee of or as a consultant or adviser to any person; or
- (5) In any other capacity.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, the term 'Interested Parties' is broadly defined within the context of conduct and agreements related to the franchise. Specifically, the agreement by Developer Parties applies to any of them, the Interested Parties, and those acting in various capacities. These capacities include acting in partnership or association with another person, or as a principal, agent, representative, director, officer, employee, or financier.
Furthermore, the definition extends to those acting as a member, shareholder, debenture holder, note holder, or holder of any other security. It also encompasses individuals acting as a trustee of or as a consultant or advisor to any person, or in any other capacity. This broad definition ensures that a wide range of individuals and entities connected to the Developer are subject to the terms and restrictions outlined in the franchise agreement.
Chatime also requires the Developer to ensure that any of its directors who are not a party to the Agreement, any Interested Party, manager, and any of its key employees nominated by Chatime enter into a confidentiality and non-competition agreement. This agreement must be in place before they receive or are granted access to any of the Confidential Information related to the franchise. Moreover, Chatime can specify that any Interested Party enters into a non-compete and confidentiality agreement with similar restraints and obligations as those imposed on the Developer and Guarantor.