Does the amendment to the Chatime Multi-Unit Development Agreement supersede other terms of documents executed in connection with the franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
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- No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, specific amendments address the superseding of other terms within documents related to the franchise, particularly concerning franchisees' rights and claims under state franchise laws. These amendments are included in the franchise agreement to comply with franchise laws in certain states, including Maryland, Illinois, New York, and Washington.
In Maryland, Illinois, New York, and Washington, the amendment specifies that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under applicable state franchise law, including claims related to fraud in the inducement, or disclaim reliance on statements made by Chatime or its representatives. This provision is explicitly stated to supersede any other conflicting terms in any document executed in connection with the franchise. This ensures that franchisees in these states retain their rights and protections under state franchise laws, regardless of any other agreements or documents signed.
For a prospective Chatime franchisee, this means that certain provisions in the state-specific amendments take precedence over other potentially conflicting terms in the franchise agreement or related documents. This is particularly relevant to protect the franchisee's rights under state franchise laws and to prevent unintentional waivers of those rights through standard documents. However, it's important to note that the effectiveness of each provision in the amendment is contingent upon meeting the jurisdictional requirements of the respective state's franchise law independently of the amendment itself. Therefore, franchisees should be aware of the specific laws in their state and how they interact with the franchise agreement.