Where can I find the specific provisions of the Chatime Franchise Agreement related to renewal, termination, transfer, and dispute resolution?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
and loyalty program in accordance with our policies and brand procedures.
Item 17: Renewal, Termination, Transfer, and Dispute Resolution
This table lists certain important provisions of the Franchise Agreement and related agreements. You should read these provisions in the agreements attached to this FDD.
THE FRANCHISE RELATIONSHIP
| Provision | Section in Franchise | Summary |
|---|---|---|
| Agreement (FA) and Multi-Unit Development Agreement (MDA) | ||
| a. Length of the | FA: §1.1(27) | The term is ten years. |
| franchise term | ||
| MDA: §1.1(34) | The period ending the end date of the agreed Development Period. . | |
| b. Renewal or extension of the term | FA: §1.1(40); §2.6 | At the end of the initial term of your Franchise Agreement, we may grant you the option to continue operating as a franchisee in your Territory and to enter into a new Franchise Agreement for a renewal term of ten years. |
| MDA: § 2.7 | At the end of the initial term of your Franchise Agreement, you may request to enter into an additional term of ten years under the terms of our then-current form of multi-unit development agreement, which may contain different terms | |
| u. Dispute resolution by arbitration or mediation | §16 | Except as otherwise provided, all disputes and claims relating to your Franchise Agreement or the relationship of the parties must be settled by mediation or arbitration in New York in accordance with the rules of the American Arbitration Association (“AAA”) mediation and arbitration service. These provisions are subject to state law. |
| MDA: §14 | Except as otherwise provided, all disputes and claims relating to your MDA or the relationship of the parties must be settled by mediation or arbitration in New York in accordance with the rules of the AAA mediation and arbitration service. These provisions are subject to state law | |
| v. Choice of forum | §16 | Arbitration in New York in accordance with the rules of the AAA service. These provisions are subject to state law. |
| MDA: §14 | Arbitration in New York in accordance with the rules of the AAA service. These provisions are subject to state law. | |
| w. Choice of law | §25.1 | Delaware law. These provisions are subject to state law. |
| MDA: §23.16 | Delaware law. These provisions are subject to state law | |
| d. Termination by franchisee | FA: §15.1; §15.2 | You may terminate your Franchise Agreement if (i) you give us written notice of termination within seven days after execution, or (ii) you are in substantial compliance with the Franchise Agreement, we materially breach the Franchise Agreement, you notify us of such breach and give us at least 60 days to remedy the breach, we do not timely remedy the breach or we fail to show continuing efforts to correct the breach, and you provide 60 days' written notice of termination. These provisions are subject to state law. |
| MDA: § 13.1 and 13.2 | You may terminate your MDA if (i) you give us written notice of termination within seven days after execution, or (ii) you are in substantial compliance with the MDA, we materially breach the MDA, you notify us of such breach and give us at least 60 days to remedy the breach, we do not timely remedy the breach or we fail to show continuing efforts to correct the breach, and you provide 60 days' written notice of termination. These provisions are subject to state law. | |
| e. Termination by franchisor without | FA: Not applicable | Not applicable. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 43–52)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Item 17 provides a summary of important provisions within the Franchise Agreement and related agreements concerning renewal, termination, transfer, and dispute resolution.
Specifically, the table within Item 17 outlines the section numbers in both the Franchise Agreement (FA) and the Multi-Unit Development Agreement (MDA) where these provisions are detailed. For instance, the length of the franchise term is defined in FA: §1.1(27) and MDA: §1.1(34). Renewal or extension of the term is addressed in FA: §1.1(40); §2.6 and MDA: § 2.7. Termination by the franchisee is covered in FA: §15.1; §15.2 and MDA: § 13.1 and 13.2. Dispute resolution by arbitration or mediation is found in §16 of the FA and §14 of the MDA. The choice of forum is also detailed in §16 of the FA and §14 of the MDA, while the choice of law is specified in §25.1 of the FA and §23.16 of the MDA.
Item 17 explicitly states that prospective franchisees should read the full provisions in the agreements attached to the FDD to fully understand their rights and obligations regarding these critical aspects of the franchise relationship. This is standard practice in franchising, as the FDD provides summaries, but the actual legal terms are in the franchise agreement itself.