Under the Chatime agreement, when must the Developer provide details of the Owners of Developer, including the number and class of Ownership Interests held by each Owner, to the Franchisor?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer:
- (1) Warrants that the Owners, directors and officers of Developer as at the date of execution are as notified to Franchisor by Developer; and
- (2) Must provide to Franchisor immediately upon request details of the Owners of Developer, including the number and class of Ownership Interests held by each Owner as at:
- (a) The date of execution of this Agreement; and
- (b) Any other date specified by Franchisor.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the Developer must provide details of the Owners of Developer to Chatime immediately upon request. This includes the number and class of Ownership Interests held by each Owner. This information must be provided as of the date of execution of the agreement and any other date specified by Chatime.
This requirement ensures that Chatime maintains an updated record of the ownership structure of its developers. This allows Chatime to monitor and control who is involved in the operation of the franchise, ensuring compliance with the franchise agreement and protecting the brand's integrity.
For a prospective Chatime franchisee, this means being prepared to disclose ownership details promptly when requested. It also highlights the importance of maintaining accurate records of ownership interests and any changes to the ownership structure. Failure to comply with these requests could potentially lead to breaches of the franchise agreement.