What must a Chatime franchisee report to the insurer and franchisor regarding claims?

According to Chatime's 2025 Franchise Disclosure Document, a franchisee must promptly report any claim or event that could lead to a claim against the franchisee, Chatime, or any of their affiliates to both the insurer and Chatime. This reporting must be done in accordance with the terms of the relevant insurance policy.

This requirement ensures that all parties are aware of potential liabilities and can take appropriate action. Prompt reporting allows the insurer to begin its assessment and Chatime to understand any potential impact on its brand or operations. The franchisee's responsibility to report aligns with standard franchise practices, where the franchisor needs to be informed of any issues that could affect the entire franchise system.

Failing to report a claim or event promptly could result in a breach of the franchise agreement and potential loss of insurance coverage. Franchisees should familiarize themselves with the specific reporting requirements outlined in their insurance policy and the franchise agreement to ensure compliance.