Is a Chatime franchisee required to complete and sign the Acknowledgement Addendum to the Franchise Agreement, as described in Exhibit F of the Franchise Disclosure Document?
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.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, whether a franchisee is required to complete and sign the Acknowledgement Addendum to the Franchise Agreement (Exhibit F) depends on the state in which the franchise will operate.
Specifically, the FDD states that Exhibit F is deleted for franchisees operating in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. Franchisees in these states and their principals are explicitly not required to complete and sign the Acknowledgement Addendum.
For prospective Chatime franchisees in states not listed, the Acknowledgement Addendum may be required. This addendum aims to confirm that franchisees understand the limitations on claims related to the franchise and that no unauthorized promises were made during the franchise sales process. Franchisees should carefully review the FDD and consult with legal counsel to understand their obligations fully, based on the state where they plan to operate their Chatime franchise.