factual

Under the Chatime Multi-Unit Development Agreement, what is the role of the entity specified as 'Developer' in Schedule 1?

Chatime Franchise · 2025 FDD

Answer from 2025 FDD Document

Chatime Multi-Unit Development Agreement

Parties:

Chatime Franchise, LLC (Franchisor)

Developer specified in Schedule 1 (Developer)

Guarantor specified in Schedule 1 (Guarantor)

Source: Item 23 — Receipts (FDD pages 58–262)

What This Means (2025 FDD)

According to Chatime's 2025 Franchise Disclosure Document, the Multi-Unit Development Agreement involves Chatime Franchise, LLC as the Franchisor, the Developer specified in Schedule 1, and the Guarantor specified in Schedule 1. The 'Developer' is granted the rights to conduct the 'Development Business,' which includes establishing and operating Chatime Outlets through franchises, as well as training, supporting, motivating, managing, and administering the Chatime network within a specific geographic area. This area is defined as the 'Development Area' in Section 4 of Schedule 1. The 'Developer's Operation' is essentially the business of developing, coordinating, supporting, and administering the Chatime network in the Development Area, all in accordance with the terms of the Multi-Unit Development Agreement.

The Developer is responsible for paying all Approved Suppliers for raw materials and other products by the due date, adhering to the suppliers' terms. When purchasing from Chatime, the Developer must pay the total amount owed for raw materials and other goods according to Chatime's credit policy and terms of trade, typically via direct deposit into Chatime's bank account as specified in Schedule 1, Section 7. The Developer must also ensure that all outlets strictly comply with Chatime's requirements regarding the Chatime Menu and the preparation of food items, as detailed in the Operations Manual.

The Developer is obligated to pay Chatime a non-refundable 'Development Fee' as per the payment schedule in Section 6 of Schedule 1, which serves as a credit against the initial franchise fee for each outlet they agree to open. Furthermore, the Developer must ensure that any directors not party to the agreement, any Interested Party, manager, and key employees sign a confidentiality and non-competition agreement before accessing confidential information, imposing a similar restraint as outlined in the agreement. The agreement specifies that the Developer's responsibilities apply to anyone acting in partnership, as an agent, director, employee, or in any other capacity related to the Chatime business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.