Does Chatime have an effective registration date in California?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit I to the Franchise Disclosure Document STATE EFFECTIVE DATES
State Effective Dates
The following states have franchise laws that require that the Franchise Disclosure Document be registered or filed with the states, or be exempt from registration: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
This document is effective and may be used in the following states, where the document is filed, registered, or exempt from registration, as of the Effective Date stated below:
CALIFORNIA
CALIFORNIA ADDENDUM TO THE CHATIME FRANCHISE, LLC FRANCHISE DISCLOSURE DOCUMENT
In recognition of the requirements of the California Franchise Investment Law, Cal. Corporations Code §31000 et seq. the Chatime Franchise, LLC Franchise Disclosure Document for use in the State of California will be amended as follows:
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- Neither Chatime Franchise, LLC ("we" or "us") nor any person identified in Item 2 of the Disclosure Document is currently subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C. 78a et seq., suspending or expelling such persons from membership in such association or exchange.
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- Item 17 of the Disclosure Document will be supplemented with the following:
California Business and Professions Code §§20000 through 20043 provide rights to you concerning termination, transfer, or nonrenewal of a franchise. If the Franchise Agreement contains a provision that is inconsistent with the law, the law will control.
The Franchise Agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law (11 U.S.C.A. §101 et seq.)
The Franchise Agreement requires application of the laws of the state of Delaware. This provision may not be enforceable under California law.
The Franchise Agreement contains a covenant not to compete which extends beyond the termination of the Franchise Agreement. This provision may not be enforceable under California law.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, California is one of the states that requires franchise registration or filing. Exhibit I to the FDD lists states with franchise laws requiring registration or filing of the Franchise Disclosure Document, and California is included in this list. This indicates that Chatime has taken the necessary steps to comply with California's franchise regulations.
Furthermore, the FDD includes a "CALIFORNIA ADDENDUM TO THE CHATIME FRANCHISE, LLC FRANCHISE DISCLOSURE DOCUMENT," suggesting that Chatime acknowledges and addresses the specific requirements of California's franchise laws. This addendum modifies certain aspects of the standard franchise agreement to align with California law, such as provisions related to termination, transfer, nonrenewal, bankruptcy, choice of law, and covenants not to compete. These modifications ensure that the franchise agreement complies with California's legal requirements.
Exhibit I states that the franchise document is effective and may be used in states where it is filed, registered, or exempt from registration. While the specific effective date for California is not provided in the excerpt, the inclusion of California in Exhibit I, along with the California Addendum, implies that Chatime has an effective registration date in California. A prospective franchisee should confirm the specific effective date with Chatime to ensure full compliance with California franchise laws.