To what extent is Chatime liable for the approval of premises or a site for the Outlet provided to the Franchisee?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
To the extent permitted by law, Franchisor will have no liability in relation to:
- (1) Any approval of premises or a site for the Outlet provided by Franchisor to Franchisee pursuant to the terms of this Agreement;
- (2) Any other approvals provided by Franchisor to Franchisee in connection with the Franchised Business pursuant to the terms of this Agreement;
- (3) The conduct of the Franchised Business by Franchisee, the success or failure of which largely depends upon the business abilities and efforts of Franchisee; and
- (4) The location, design, construction, or renovation of the Outlet or the furnishings, fixtures, and equipment to be required, notwithstanding the right of Franchisor to approve any plans, and to inspect the construction and/or renovation work and such Outlet. Such rights of Franchisor are exercised solely for the purpose of ensuring compliance with the terms and conditions of this Agreement.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Chatime's liability is limited regarding the approval of premises or a site for the Outlet provided to the franchisee. Chatime bears no liability for the approval of the premises or site.
Specifically, Chatime is not liable for any approvals it provides to the franchisee related to the franchised business. The success or failure of the Chatime business is largely dependent on the franchisee's own business abilities and efforts.
Chatime also bears no liability for the location, design, construction, or renovation of the Outlet, including furnishings, fixtures, and equipment, even though Chatime has the right to approve plans and inspect the construction or renovation work. These rights are solely to ensure compliance with the franchise agreement terms.