Does the Chatime franchise agreement require franchisees to arbitrate disputes at a location remote from the franchisee's North Dakota business?

According to Chatime's 2025 Franchise Disclosure Document, the original franchise agreement might have required North Dakota franchisees to arbitrate disputes at a location remote from their business. However, the North Dakota Addendum specifically addresses this issue to protect franchisees.

To comply with North Dakota Century Code §51-19-09, Chatime has amended the franchise agreement for North Dakota franchisees. Clause 16.3(2) of the standard Franchise Agreement, and Clause 14.3(2) of the Multi-Unit Development Agreement, which dictated the arbitration location, have been entirely replaced. The revised clause mandates that the arbitration site must be agreeable to all parties involved and cannot be remote from the franchisee's place of business. Furthermore, the amendment allows parties and witnesses to participate via videoconference unless all parties agree otherwise.

This change ensures that North Dakota Chatime franchisees are not forced to bear the additional burden and expense of traveling to a distant location for arbitration. By requiring mutual agreement on the arbitration site and permitting videoconferencing, Chatime aims to make the arbitration process more accessible and fair for its North Dakota franchisees. This demonstrates Chatime's willingness to adapt its standard agreement to comply with state-specific regulations and protect franchisee interests.