In the event of a conflict between the Lease and the Agreement, which document governs the Chatime franchise?

According to Chatime's 2025 Franchise Disclosure Document, specifically the Lease Addendum, the terms of the Lease Addendum will govern in the event of a conflict with the Lease. This Lease Addendum modifies and supplements the original Lease agreement between the landlord and the tenant (Chatime franchisee). This ensures that Chatime's interests and requirements are prioritized in matters concerning the leased premises.

This clause is included in the Lease Addendum to protect Chatime's brand standards and operational consistency. By ensuring the Lease Addendum takes precedence, Chatime maintains control over key aspects of the franchise location, such as modifications to protect their proprietary system or cure defaults. This also prevents landlords and tenants from making lease amendments without Chatime's prior written consent, safeguarding Chatime's interests.

For a prospective Chatime franchisee, this means that the Lease Addendum is a critical document. Franchisees should carefully review it to understand how it modifies their rights and obligations under the original lease. It also highlights the importance of involving Chatime in any lease negotiations or amendments to ensure compliance with the franchise agreement. This arrangement is typical in franchising, where the franchisor needs to maintain uniformity and protect its brand across all locations.