Does the Chatime franchisee acknowledge that they are not entering into the agreement based on any financial information or representations from Chatime?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit F to the Franchise Disclosure Document
ACKNOWLEDGMENT ADDENDUM TO CHATIME FRANCHISE, LLC FRANCHISE AGREEMENT
[Do not sign this Acknowledgement Addendum if you are resident of California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, or the business is to be operated in any of these states].
As you know, you and we are entering into a Franchise Agreement for the operation of a Chatime franchise. The purpose of this Acknowledgment Addendum is to determine whether any statements or promises were made to you that we have not authorized or that may be untrue, inaccurate or misleading, and to be certain that you understand the limitations on claims that may be made by you by reason of the offer and sale of the franchise and operation of your business. Please review each of the following questions carefully and provide honest responses to each question.
Acknowledgments and Representations
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, Exhibit F, titled "Acknowledgment Addendum to Chatime Franchise, LLC Franchise Agreement," is designed to confirm that prospective franchisees are not relying on unauthorized or inaccurate statements or promises made during the franchise sales process. This addendum aims to ensure franchisees understand the limitations on claims they can make regarding the offer, sale, and operation of their Chatime franchise.
The Acknowledgment Addendum includes a series of questions that franchisees must review and answer honestly. These questions are intended to determine whether any statements or promises were made that Chatime has not authorized or that may be untrue, inaccurate, or misleading. By completing this addendum, franchisees acknowledge that their decision to enter into the franchise agreement is based on their own due diligence and understanding of the risks and opportunities involved, rather than solely on representations made by Chatime.
However, it is important to note that this addendum is not applicable to residents or businesses operating in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. For these states, a specific provision supersedes any term of any document executed in connection with the franchise, ensuring that no statement, questionnaire, or acknowledgment can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Chatime or its representatives. This ensures franchisees in these states retain their legal rights and protections.
In summary, the Acknowledgment Addendum serves as a mechanism for Chatime to verify that franchisees are making informed decisions and are not relying on potentially misleading information. However, the exclusion of certain states and the specific provisions for those states highlight the importance of understanding individual state franchise laws and protections.