Under what conditions can the Chatime Attorney exercise their powers?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
If Tenant fails to cure any default within the period provided in the Lease, if any, Landlord shall give Franchisor immediate written notice of such failure to cure.
All notices shall be
- delivered by certified mail at the addresses designated in the heading of this Agreement or to such other addresses as the parties hereto may, by written notice, designate.
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- Binding Effect. This Agreement shall be binding upon the parties hereto, their heirs, executors, successors, assigns and legal representatives.
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- Severability. If any provision of this Agreement or any part thereof is declared invalid by any court of competent jurisdiction, such act shall not affect the validity of this Agreement and the remainder of this Agreement shall remain in full force and effect according to the terms of the remaining provisions or part of provisions hereof.
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- Remedies. The rights and remedies created herein shall be deemed cumulative and no one such right or remedy shall be exclusive at law or in equity of the rights and remedies which Franchisor may have under this or any other agreement to which Franchisor and Tenant are parties.
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- Attorneys' Fees. If any of the parties to this Agreement commences a legal action against another party arising out of or in connection with this Agreement, the prevailing party shall be entitled to have and recover from the other party its reasonable attorneys' fees and costs of suit; the term "prevailing party" means a party that is awarded actual relief in the form of damages, declaratory relief, or injunctive relief, as well as a party that successfully defends a legal action commenced against it.
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- Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
Based on the 2025 Chatime Franchise Disclosure Document, the circumstances under which the Chatime attorney can exercise their powers are not explicitly detailed. However, the Lease Addendum outlines scenarios where the Landlord must notify Chatime if the Tenant (franchisee) fails to cure a default within the lease agreement. This implies Chatime's involvement and potential exercise of rights to protect its interests.
Specifically, the Lease Addendum states that if a Chatime franchisee (Tenant) fails to address a default within the period specified in their lease, the Landlord is obligated to provide immediate written notice to Chatime. This notification triggers Chatime's awareness of the situation and allows them to take appropriate action, which may involve the attorney exercising certain powers. The agreement also states that if any legal action arises, the prevailing party is entitled to attorney's fees.
While the exact powers the attorney can exercise are not defined in this section, the FDD does specify that the rights and remedies created within the addendum are cumulative. This means Chatime's legal options are not limited to those explicitly mentioned in the Lease Addendum, and they can pursue other remedies available under the law or other agreements. A prospective franchisee should seek clarification from Chatime regarding the specific powers their attorney can exercise in such situations and under what conditions those powers are triggered.