Does the Chatime definition of 'Legal Requirements' include municipal government policies?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (36) Legal Requirements means all applicable laws, ordinances, regulations, rules, administrative orders, decrees, and policies of any government, governmental agency, or department including, without limitation, the municipal, city, county, state and federal governments of the Territory, unless otherwise stated in this Agreement.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the definition of 'Legal Requirements' does include municipal government policies. The FDD specifies that 'Legal Requirements' encompasses all applicable laws, ordinances, regulations, rules, administrative orders, decrees, and policies of any government, governmental agency, or department. This definition explicitly includes the municipal, city, county, state and federal governments of the Territory.
This broad definition means that Chatime franchisees must comply with all policies set by municipal governments, in addition to other levels of government. These policies could relate to zoning, health codes, business licenses, and other operational aspects.
It is important for prospective Chatime franchisees to understand and factor in the cost of complying with all applicable legal requirements, including those at the municipal level, as these can vary significantly depending on the location of the franchise.