Does Chatime's exercise of other remedies waive its right to terminate the agreement in the future?

According to the 2025 Chatime Franchise Disclosure Document, Chatime's choice to use alternative remedies instead of immediately terminating the agreement does not prevent them from terminating the agreement later or using any other rights they possess under the agreement. This means that Chatime retains the flexibility to pursue various solutions for a developer's default without forfeiting its right to terminate the agreement if the situation warrants it.

For a prospective Chatime franchisee, this clause provides clarity on the franchisor's options in case of a default. Chatime can choose to work with the franchisee to resolve issues through methods like reducing the development area, temporarily suspending services, or imposing different credit terms. These alternatives give the franchisee an opportunity to correct the default without immediately facing termination.

However, it's important to recognize that Chatime retains the right to terminate the agreement in the future, even after attempting these alternative remedies. This protects Chatime's interests and ensures that serious or persistent defaults can ultimately lead to termination, safeguarding the brand and network. Franchisees should be aware that while Chatime may initially offer solutions to help resolve a default, the possibility of termination remains if the issues are not adequately addressed.