For Chatime franchise agreements, under what conditions is a waiver considered effective?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
NDMENT TO THE CHATIME FRANCHISE, LLC FRANCHISE AGREEMENT**
In recognition of the requirements of the Illinois Franchise Disclosure Act of 1987, the parties to the Chatime Franchise, LLC Franchise Agreement (the "Franchise Agreement") agree as follows:
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- Illinois law governs the Franchise Agreement.
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- In conformance with §4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction or venue in a forum outside the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
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- Your rights upon Termination and Non-Renewal are set forth in §§19 and 20 of the Illinois Franchise Disclosure Act.
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- In conformance with §41 of the Illinois Franchise Disclosure Act, any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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- 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.
IN WITNESS WHEREOF, the parties hereto have duly executed, sealed, and delivered this Amendment to the Franchise Agreement on the same date as that on which the Franchise Agreement was executed.
| CHATIME FRANCHISE, LLC | FRANCHISEE |
|---|---|
| ------------------------------ | ------------ |
| By: | By: |
|---|---|
| Name: | Name: |
| Title: | Title: |
ILLINOIS AMENDMENT TO THE CHATIME FRANCHISE, LLC MULTI-UNIT DEVELOPMENT AGREEMENT
In recognition of the requirements of the Illinois Franchise Disclosure Act of 1987, the parties to the Chatime Franchise, LLC Multi-Unit Development Agreement (the "Multi-Unit Development Agreement") agree as follows:
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- Illinois law governs the Multi-Unit Development Agreement.
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- In conformance with §4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction or venue in a forum outside the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
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Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, several provisions address the effectiveness of waivers, particularly concerning state franchise laws. For franchisees in New York and Illinois, specific amendments ensure that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under applicable state franchise laws, including claims of fraud in the inducement, or disclaim reliance on statements made by Chatime or its representatives. These provisions supersede any other conflicting terms in the franchise agreement.
In Illinois, any condition, stipulation, or provision that attempts to bind a person acquiring a Chatime franchise to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is considered void. Similarly, in New York, the amendments to the franchise agreement ensure that franchisees retain all rights and causes of action arising from Article 33 of the General Business Law of the State of New York and its regulations, satisfying the non-waiver provisions of General Business Law §§687.4 and 687.5.
Furthermore, a general release does not extend to claims unknown to the creditor at the time of execution, which, if known, would have materially affected the settlement. Any overly broad restriction in a general release will be interpreted to extend only to the maximum enforceable scope. This general release does not apply to waivers relieving liability imposed on Chatime by applicable laws. These stipulations aim to protect franchisees' rights and ensure compliance with state laws, preventing unintentional or forced waivers of legal protections.