What was the date of the consent order that Chatime USA LLC agreed to?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
closure document. Under the terms of a consent order dated September 16, 2019, our affiliate Chatime USA LLC agreed to cease and desist from the sale of franchises in Washington in violation of Washington franchise law and paid the Department $2,500 for the costs of
Source: Item 3 — Litigation (FDD pages 10–11)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Chatime USA LLC entered into a consent order with the Washington Department of Financial Institutions on September 16, 2019. This order was a result of an investigation into Chatime USA LLC's prior franchising activities in Washington. The investigation concluded that Chatime USA LLC had violated Washington franchise law by granting master franchise rights without proper registration and by failing to provide a U.S. disclosure document to the Alberta Master Franchisee.
Under the terms of the consent order, Chatime USA LLC agreed to cease and desist from selling franchises in Washington in violation of Washington franchise law. Additionally, Chatime USA LLC paid $2,500 to cover the costs of the Department's investigation.
For a prospective Chatime franchisee, this litigation indicates the importance of adhering to franchise laws and registration requirements when expanding into new territories. It also highlights the potential financial consequences of non-compliance, including fines and legal costs. Franchisees should ensure that Chatime has all necessary registrations and approvals in place before commencing operations in a particular state to avoid similar issues.