What actions are Chatime franchisees required to take to cooperate with the franchisor in obtaining governmental approvals?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
5.6 Governmental Approvals (Including Registration)
(1) Franchisee agrees to execute any and all instruments and documents, render such assistance, and otherwise cooperate with Franchisor, in order to obtain all governmental approvals Franchisor is required to obtain or which, in the opinion of Franchisor, are
- necessary at any time during the Initial Term, in the opinion of Franchisor, to comply with any Legal Requirements.
- (2) Franchisor has the right exercisable at its option, to submit, or to require Franchisee to submit, this Agreement to any Agency for registration or approval in the event Franchisor determines such registrations or approvals are necessary in order to comply with any Legal Requirements. If the Agency requires that any amendments be made to this Agreement as a condition to such approval or registration and such amendments are acceptable to Franchisor, Franchisor will deliver to Franchisee for execution an addendum to this Agreement, or other appropriate documents, to reflect such amendments.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, franchisees must cooperate with Chatime to obtain necessary governmental approvals. Specifically, the franchisee must execute instruments and documents, provide assistance, and cooperate with Chatime to secure governmental approvals that Chatime needs or believes are necessary during the initial term to comply with legal requirements.
Chatime retains the right to submit the Franchise Agreement to governmental agencies for registration or approval if it deems necessary to comply with legal requirements. If an agency requires amendments to the agreement as a condition of approval or registration, and Chatime finds these amendments acceptable, Chatime will provide the franchisee with an addendum or other documents to reflect these changes, which the franchisee must then execute.
This requirement ensures that Chatime and its franchisees operate in compliance with all applicable laws and regulations. It also allows Chatime to maintain brand consistency and protect its interests by ensuring that all franchise agreements meet legal standards. The franchisee's cooperation is essential for Chatime to navigate legal requirements and maintain a legally sound franchise system.