Does the Chatime Franchise Agreement disclaim the representations made in Chatime's Franchise Disclosure Document, its exhibits, and amendments?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, the Franchise Agreement generally does not allow franchisees to disclaim reliance on statements made by Chatime in connection with the franchise relationship. However, this is subject to specific state laws and amendments to the franchise agreement.
For franchisees in California, Illinois, Maryland, and Virginia, specific addenda and amendments clarify this point. These states stipulate that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Chatime. These provisions are designed to protect franchisees from inadvertently relinquishing their legal rights based on information provided by Chatime.
Exhibit F, the Acknowledgement Addendum to the Chatime Franchise Agreement, is not to be signed by residents of California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, or if the business is to be operated in any of these states. This addendum aims to ensure franchisees understand the limitations on claims they can make regarding the franchise offering and business operation, and to confirm that no unauthorized statements or promises were made to them.