Where in the Chatime FDD can I find information about transfer and other dealings by the Chatime franchisee?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Clauses 2, 13, and 15 of the Franchise Agreement, under the headings "Grant of rights," "Transfer and other dealings by the Franchisee," and "Termination of Agreement," will be supplemented by the addition of the following language:
Minnesota law provides franchisees with certain termination, non-renewal, and transfer rights. In sum, Minn. Stat. §80C.14, Subd. 3, 4, and 5 currently requires, except specified cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of nonrenewal of the Franchise Agreement, and that consent to the transfer of the franchise not be unreasonably withheld.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, specific information regarding the transfer and other dealings by the franchisee can be found in Clause 13 of the Franchise Agreement, under the heading "Transfer and other dealings by the Franchisee."
For prospective franchisees in Minnesota, the Minnesota Amendment to the Chatime Franchise Agreement supplements Clause 13, outlining specific rights related to franchise transfer under Minnesota law. It states that Minnesota law requires that consent to the transfer of the franchise not be unreasonably withheld.
Additionally, the Minnesota Addendum to the Chatime Franchise Disclosure Document amends Items 17(b), 17(c), 17(f), and 17(k), under the headings entitled "Renewal or Extension of the Term," "Requirements for Franchisee to Renew or Extend," "Termination by Franchisor With Cause," and "'Transfer' by Franchisee – Defined," further emphasizing the transfer rights provided by Minnesota law. Similarly, the Maryland Addendum amends Items 17(c) and 17(m), under the headings entitled "Requirements for Franchisee to Renew or Extend" and "Conditions for Franchisor Approval of Transfer," clarifying that any general release required as a condition of transfer approval will not apply to liabilities under Maryland Franchise Law.