Does the Chatime franchisee acknowledge relying on their own investigations when entering the agreement?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
igned 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.
Each provision of this Addendum will be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Illinois Franchise Disclosure Act of 1987 are met independently without reference to this Addendum.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
Based on the 2025 Chatime Franchise Disclosure Document, the Illinois Amendment includes a clause addressing reliance on investigations. Specifically, for franchisees in Illinois, the amendment ensures that no agreement signed by the franchisee can disclaim reliance on statements made by Chatime or its representatives.
This means that Chatime franchisees in Illinois retain their rights to claim they relied on statements made by the franchisor, even if there are other clauses in the franchise agreement that might suggest otherwise. This protection is in place to prevent Chatime from using standard contract language to avoid responsibility for misrepresentations made during the franchise sales process.
For prospective Chatime franchisees in Illinois, this amendment is a beneficial safeguard. It ensures that they cannot inadvertently waive their rights to claim reliance on information provided by Chatime when entering the franchise agreement. Franchisees outside of Illinois should consult with a legal professional to understand their rights regarding reliance on franchisor statements, as laws vary by state.