factual

Does the Chatime Franchise Agreement still include a waiver of jury trial?

Chatime Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Section 16.4 of the Franchise Agreement, and if applicable Section 14.4 of the Multi-Unit Development Agreement, entitled "Waiver of Jury Trial," is deleted.

NORTH DAKOTA

NORTH DAKOTA ADDENDUM TO THE CHATIME FRANCHISE, LLC FRANCHISE DISCLOSURE DOCUMENT

THE SECURITIES COMMISSIONER HAS HELD THE FOLLOWING TO BE UNFAIR, UNJUST, OR INEQUITABLE TO NORTH DAKOTA FRANCHISEES (NORTH DAKOTA CENTURY CODE ("NDCC") §51-19-09):

  • F. Waiver of Trial by Jury: Requiring North Dakota franchisees to consent to the waiver of a trial by jury.

Source: Item 23 — Receipts (FDD pages 58–262)

What This Means (2025 FDD)

According to the 2025 Chatime Franchise Disclosure Document, the standard Franchise Agreement includes a waiver of jury trial; however, this provision is removed for franchisees in North Dakota. The North Dakota Addendum to the Chatime Franchise Disclosure Document states that requiring North Dakota franchisees to consent to the waiver of a trial by jury has been deemed unfair, unjust, or inequitable by the Securities Commissioner.

To comply with North Dakota Century Code §51-19-09, Chatime will amend its Franchise Disclosure Document for use in North Dakota. Specifically, Section 16.4 of the Franchise Agreement, and if applicable Section 14.4 of the Multi-Unit Development Agreement, entitled "Waiver of Jury Trial," is deleted.

For prospective Chatime franchisees outside of North Dakota, it is important to note that the franchise agreement may still contain a clause requiring them to waive their right to a jury trial. Franchisees should carefully review the agreement and consider the implications of this waiver, as it could affect how disputes with Chatime are resolved.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.