Under the Chatime agreement, what is each party required to do to give full effect to the agreement?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
IN WITNESS WHEREOF, the parties hereto have duly executed, sealed, and delivered this Amendment to the Franchise Agreement on the same date as that on which the Franchise Agreement was executed.
CHATIME FRANCHISE, LLC DEVELOPER
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
Based on the 2025 Chatime Franchise Disclosure Document, several clauses outline the responsibilities of both the franchisee and franchisor to ensure the agreement is fully implemented. The franchisee is obligated to adhere to specific payment and trading terms, including paying Approved Suppliers for raw materials by the due date and in the specified manner. They must also comply with Chatime's credit policy and terms of trade when purchasing from the franchisor, ensuring payments are made in full via direct deposit or other approved electronic methods. Franchisees are required to execute any necessary forms for direct debit payments.
Furthermore, the franchisee must strictly adhere to Chatime's menu requirements, offering the complete range of food and beverages as specified and prepared according to the Operations Manual. They are prohibited from selling any items not on the Chatime Menu and must source all products exclusively from Approved Suppliers. The franchisee is also obligated to pay the New Outlet Fee upon signing the Franchise Agreement.
In addition to these obligations, both the franchisor and franchisee are expected to sign and deliver the agreement, as well as any state-specific amendments, to give full legal effect to the contract. For instance, amendments for Illinois, Maryland, Minnesota, and New York require both parties to execute, seal, and deliver the amended agreements, indicating their intention to be legally bound by the updated terms. These amendments address specific state laws and ensure compliance with local franchise regulations, further solidifying the agreement's enforceability.