For Chatime, what must the Franchisee obtain regarding a Lease Addendum, and who must sign it?

According to Chatime's 2025 Franchise Disclosure Document, a franchisee must obtain a Lease Addendum for the premises of their outlet. This addendum is a crucial document that outlines specific rights and obligations related to the lease of the property where the Chatime store will operate.

The Lease Addendum must be signed by three parties: the franchisee (referred to as "Franchisee" or "Tenant"), Chatime (referred to as "Franchisor"), and the landlord. This three-party agreement ensures that all parties are aware of and agree to the terms outlined in the addendum, which supplements the original lease agreement.

The Lease Addendum is substantially in the form attached as Exhibit 2, which gives Chatime the option, but not the obligation, to assume the lease if the franchisee defaults. It also requires the landlord to provide written notice to Chatime of any defaults by the franchisee. This provision protects Chatime's interest in maintaining the location for continued operation of a franchise, even if the original franchisee fails to meet their lease obligations. This requirement is a standard practice in franchising, as it allows the franchisor to maintain control over the location and ensure business continuity.