What exhibit contains the standard form of the Chatime Franchise Agreement?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
ritory"). If we grant you a franchise, you will execute our standard form of Chatime Franchise, LLC Franchise Agreement attached as Exhibit B (the "Franchise Agreement") and be granted the right to develop and operate one Chatime Store.
We also offer multi-unit development agreement franchises to qualified persons who must establish certain minimum numbers of Chatime Stores within a designated geographic territory (a "Development Territory"). If we grant you a multi-unit development agreement franchise, you will execute our standard form of multi-unit development agreement attached as Exhibit C (the "Multi-Unit Development Agreement") and be granted the right to begin opening Chatime Stores in your Development Territory (the "Development Rights"). Your master franchise business includes the obligation to open a certain number of Chatime Stores in your Development Territory in accordance with a specified schedule (the "Development Quota"). Upon establishing each additional outlet under the Multi-Unit Development Agreement, you will be required to sign our then-current Franchise Agreement, which may differ from the current Franchise Agreement included with this Franchise Disclosure Document.
Source: Item 1 — The Franchisor, and Any Parents, Predecessors, and Affiliates (FDD pages 6–9)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the standard form of the Chatime Franchise Agreement is included as Exhibit B. This is a crucial document for potential franchisees as it outlines the contractual obligations, rights, and responsibilities of both the franchisee and Chatime. Understanding this agreement is paramount before making any investment.
For those interested in developing multiple Chatime stores, the standard form of the multi-unit development agreement is attached as Exhibit C. However, the document clarifies that upon establishing each additional outlet under the Multi-Unit Development Agreement, franchisees will be required to sign the then-current Franchise Agreement, which may differ from the one included in the FDD. This implies that the terms and conditions could evolve over time, potentially impacting the franchisee's obligations and the franchisor's support.
Furthermore, the FDD states that franchisees must execute the Acknowledgment Addendum, which is attached as Exhibit F, before the Franchise Agreement becomes effective. This addendum likely contains important acknowledgements and confirmations from the franchisee, ensuring they understand the terms and conditions of the franchise. Prospective franchisees should carefully review all exhibits, especially Exhibits B, C, and F, to fully understand their commitments and the franchisor's expectations.