factual

What actions can Chatime take on the leased premises without being guilty of trespass?

Chatime Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisor may enter the Leased Premises without the consent of Landlord or Tenant to make any modification necessary to protect Franchisor's proprietary system or marks or to cure any default under the Franchise Agreement or under the Lease, without being guilty of trespass or any other crime or tort.

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

What This Means (2025 FDD)

According to Chatime's 2025 Franchise Disclosure Document, Chatime, as the Franchisor, has specific rights regarding entry to the leased premises of a Chatime store. Chatime can enter the leased premises without needing consent from either the landlord or the tenant (the franchisee) under certain conditions. These conditions are explicitly tied to protecting Chatime's interests in its proprietary system and marks, or to address defaults related to the Franchise Agreement or the Lease agreement itself.

Specifically, Chatime can enter the premises to make modifications necessary to protect its proprietary system or trademarks. This might include changes to signage, décor, or operational systems to ensure brand consistency and compliance with Chatime standards. Additionally, Chatime can enter the premises to rectify any defaults, meaning failures to meet obligations, under either the Franchise Agreement or the Lease. This could involve addressing issues such as non-payment of rent, failure to adhere to operational standards, or other breaches of contract.

The critical aspect of this provision is that Chatime can undertake these actions "without being guilty of trespass or any other crime or tort." This clause protects Chatime from legal challenges related to unauthorized entry, provided that the entry is for the specified purposes of protecting its system, marks, or curing defaults. This is a significant right for Chatime, as it allows them to proactively address issues that could negatively impact the brand or the operation of the franchise.

For a prospective franchisee, this means that Chatime has the legal right to enter and modify their store under certain circumstances, even without their explicit consent. While this might seem intrusive, it is designed to ensure the consistency and quality of the Chatime brand and to protect the overall franchise system. Franchisees should understand that this right is reserved for specific situations and is intended to safeguard the interests of both Chatime and the network of franchisees.

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.