What representation and warranty do the Chatime Developer and Guarantor make regarding their understanding of the Agreement's terms?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Developer and Guarantor represent and warrant that the terms and conditions of this Agreement have been explained to each of them by an independent legal adviser and an independent business adviser and that they understand and accept the terms and conditions of this Agreement.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, the Developer and Guarantor represent and warrant that they have sought advice from independent legal and business advisors regarding the franchise agreement. They also warrant that they fully understand and accept all the terms and conditions outlined in the agreement. This is a standard clause in franchise agreements.
This warranty is significant because it confirms that the Developer and Guarantor have had the opportunity to receive independent counsel and have made an informed decision to enter into the agreement. It aims to prevent future claims that they were unaware of or did not understand the obligations and responsibilities they were undertaking.
Prospective Chatime franchisees should carefully consider this clause and ensure they do indeed seek independent legal and business advice before signing the agreement. This due diligence can help them fully grasp the implications of the agreement and make an informed decision about investing in a Chatime franchise.