Does the arbitrator have the authority to amend or modify the terms of the Chatime Franchise Agreement?

According to the 2025 Chatime Franchise Disclosure Document, the arbitrator does not have the authority to amend or modify the terms of the agreement. This is explicitly stated in the franchise agreement.

This means that any disputes that go to arbitration will be decided based on the existing terms of the Franchise Agreement, and the arbitrator cannot change those terms. This provides certainty for both Chatime and the franchisee, as the arbitrator is bound to interpret and apply the agreement as it is written.

This limitation on the arbitrator's authority is a fairly standard practice in franchising, as it ensures that the original agreement between the parties remains the governing document. Franchisees should be aware of this limitation and understand that arbitration is a process of interpreting the existing agreement, not rewriting it.