Under what conditions can the Chatime attorney exercise their powers, and what actions can they take?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
r than to pay money) under this Agreement caused by:
- (1) Act of God;
- (2) War, terrorism, riot, insurrection, vandalism, or sabotage;
- (3) Strike, lockout, ban, limitation of work, or other industrial disturbance; or
- (4) Law, rule, or regulation of any government or governmental agency and executive or administrative order or act of general or particular application.
- 20.2 The Affected Party must notify each other party as soon as practical of any anticipated delay or failure caused by an event referred to in clause 20.1 (Event).
- 20.3 The performance of the Affected Party's obligation is suspended for the period of delay caused by the Event.
21 Power of Attorney
- (1) To secure performance by Developer of its obligations under this Agreement, Developer Parties irrevocably appoint Franchisor and each of its officers severally to be their attorney (Attorney) to exercise the powers described in this clause 21.
- (2) If Developer Parties breach any provision of this Agreement or any Collateral Agreement or at the end of the Development Business the Attorney may, in the name and at the Cost of either Developer or Guarantor, do anything required to be done
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the franchisor can appoint an attorney to act on behalf of the developer under specific conditions. The developer parties, which include the developer and any guarantors, grant this power of attorney to Chatime and its officers to ensure the developer fulfills their obligations under the agreement.
This power is triggered if the developer breaches any provision of the agreement or any related collateral agreements. It also applies at the end of the development business. When such a breach occurs, the attorney can take any action required of the developer that they have failed to do properly or promptly. This includes executing and delivering documents, transfers, assignments, deeds, forms, notices, or other instruments, particularly those related to the Marks (trademarks and service marks) and the Chatime website.
The powers granted to the attorney commence immediately upon the execution of the agreement and continue even after the development business ends. The developer parties are obligated to ratify and confirm any actions the attorney lawfully takes under this clause. Furthermore, the developer parties must pay all costs or other liabilities incurred by or on behalf of Chatime or the attorney under this clause, upon demand. This arrangement ensures that Chatime has the legal means to enforce the agreement and protect its interests, even if the developer fails to meet their obligations.