Who qualifies as an 'Interested Party' in relation to a Chatime Developer?
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.
7.4 Separate Restraint Agreements
Clauses 7.2 and 7.3 have effect as comprising each of the separate provisions which results from each combination of a capacity referred to in clause 7.3, a category of conduct referred to in clause 7.2, a geographical area specified in Schedule 1 and a period of time specified in Schedule 1.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the term 'Interested Parties' applies broadly to those associated with the Developer. These parties are subject to certain restraints and obligations outlined in the franchise agreement. Specifically, the agreement by Developer Parties applies to the Developer, the Guarantor, the Interested Parties, and those acting in various capacities.
The capacities in which these individuals or entities might be acting include being in partnership or association with another person, or acting as a principal, agent, representative, director, officer, employee, or financier. It also extends to those acting as a member, shareholder, debenture holder, note holder, or holder of any other security, as well as trustees, consultants, or advisors to any person. Essentially, it covers anyone with a significant connection to the Developer's operations.
Chatime requires 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 before they receive or are granted access to any of the Confidential Information. Furthermore, Chatime can require any Interested Party to enter into a non-compete and confidentiality agreement with similar reasonable restraints and confidentiality obligations as those imposed on the Developer and Guarantor. This ensures that a wide range of individuals connected to the Developer are bound by confidentiality and non-competition terms, protecting Chatime's interests.