According to the 2025 Chatime Franchise Disclosure Document, Chatime, as the Franchisor, is indeed a third-party beneficiary of the franchise agreement and has the right to enforce it against the franchisee. The agreement explicitly states that Chatime can enforce the agreement solely, or jointly with the Franchisee.

This means that if a franchisee violates the agreement, Chatime can take legal action independently to ensure compliance. The document also emphasizes that any violation of the agreement will cause irreparable harm to both Chatime and the franchisee, reinforcing Chatime's right to seek an injunction to prevent further breaches. The franchisee is also responsible for covering all costs, including legal fees and expenses, incurred by Chatime if the agreement is enforced against them.

This clause is significant for prospective franchisees as it highlights the franchisor's commitment to protecting its brand and network. It also underscores the legal obligations of the franchisee and the potential financial consequences of non-compliance. Franchisees should be aware that Chatime has the legal standing to act independently to protect its interests, which is a common practice in franchising to maintain brand standards and consistency across all locations.