What is the franchisee acknowledging about the completeness of the Chatime Franchise Agreement and Franchise Disclosure Document?

According to Chatime's 2025 Franchise Disclosure Document, several addenda and amendments address acknowledgments from franchisees, particularly concerning waivers of rights and reliance on franchisor statements. For franchisees in California, Illinois, Maryland, New York, Virginia, and Washington, Exhibit F, the Acknowledgement Addendum to the Franchise Agreement, is deleted. This means franchisees in these states are not required to complete or sign this addendum. This is to ensure that franchisees in these states do not inadvertently waive rights or disclaim reliance on statements made by Chatime.

The FDD explicitly states that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under state franchise law, including claims related to fraud in the inducement, or disclaim reliance on statements made by Chatime or its representatives. This provision supersedes any other conflicting terms in any document executed in connection with the franchise. This is a protective measure for franchisees, ensuring they retain their legal rights and recourse options, regardless of any acknowledgements they may have signed.

In essence, Chatime acknowledges that franchisees should not be bound by acknowledgements that could potentially limit their rights or legal recourse under applicable state franchise laws. This is particularly relevant in states with franchise-specific laws designed to protect franchisees from overreaching franchisors. Prospective franchisees should carefully review these addenda and amendments to understand their rights and how they are protected under the franchise agreement and relevant state laws.