What is the effect of the Tenant's agreement to vacate the leased premises on Chatime's right to acquire the property?

According to Chatime's 2025 Franchise Disclosure Document, the tenant (franchisee) agrees to vacate the leased premises peaceably and promptly upon termination of the Franchise Agreement. This agreement is subject to Chatime's right to acquire the property, meaning that Chatime has the option to take over the lease rather than have the franchisee simply vacate. The franchisee must also remove their personal property from the premises upon termination. Any property not removed or disposed of by the franchisee is deemed abandoned.

This clause ensures that Chatime has the first right to maintain control of the location if the franchise agreement is terminated. This is a common practice in franchising, as the location is often critical to the success of the business. By securing the right to acquire the lease, Chatime can continue operations at that location with a new franchisee or as a company-owned store.

For a prospective Chatime franchisee, this means that upon termination of the franchise agreement, they must be prepared to vacate the premises and remove all personal property unless Chatime exercises its right to acquire the lease. Failure to remove property could result in it being considered abandoned. This provision protects Chatime's interest in maintaining the location for future business operations.