What is considered a 'Dispute' relating to the Chatime agreement?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.1 Notice of Dispute. If a dispute arises relating to or in connection with this Agreement or the relationship of the parties ("Dispute"), a party to the Dispute must give to the other party or parties to the dispute notice specifying the dispute and requiring its resolution under this clause 16 ("Notice of Dispute").
- 16.2 Mediation. If the parties cannot resolve their Dispute within 30 days from the date of service of the Notice of Dispute, either party may refer the matter to a mediator and if the parties cannot agree upon the appointment of a mediator, either party may submit the matter to the American Arbitration Association ("AAA") and obtain the appointment of a mediator under the AAA mediation rules from the AAA Franchise Panel.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a 'Dispute' is defined as any disagreement that arises relating to or in connection with the Franchise Agreement or the relationship between the parties involved.
If a dispute occurs, the party raising the issue must provide a formal 'Notice of Dispute' to the other party, clearly outlining the specifics of the disagreement and indicating that resolution is required under the agreement's clause 16. This initial notice is a critical first step, setting the stage for attempts to resolve the matter.
Following the notice, both parties have 30 days to resolve the dispute. If they cannot reach an agreement within this period, either party has the option to refer the matter to a mediator. If both parties cannot agree on a mediator, either party can submit the matter to the American Arbitration Association (AAA) to appoint a mediator from the AAA Franchise Panel. This process ensures that there is an impartial third party to help facilitate a resolution.