What is Chatime franchisee's obligation regarding securing and maintaining licenses, permits, and certificates?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
5.6 Governmental Approvals (Including Registration)
(1) Franchisee agrees to execute any and all instruments and documents, render such assistance, and otherwise cooperate with Franchisor, in order to obtain all governmental approvals Franchisor is required to obtain or which, in the opinion of Franchisor, are
- necessary at any time during the Initial Term, in the opinion of Franchisor, to comply with any Legal Requirements.
- (2) Franchisor has the right exercisable at its option, to submit, or to require Franchisee to submit, this Agreement to any Agency for registration or approval in the event Franchisor determines such registrations or approvals are necessary in order to comply with any Legal Requirements. If the Agency requires that any amendments be made to this Agreement as a condition to such approval or registration and such amendments are acceptable to Franchisor, Franchisor will deliver to Franchisee for execution an addendum to this Agreement, or other appropriate documents, to reflect such amendments.
5.7 Compliance With Legal Requirements
- (1) Franchisee must secure and maintain in force in its name all required licenses, permits, and certificates relating to Franchisee's obligation
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the franchisee is responsible for securing and maintaining all necessary licenses, permits, and certificates required to operate their Chatime franchise. This includes ensuring that all licenses and permits are kept current and in the franchisee's name.
Additionally, the franchisee must cooperate with Chatime by executing documents and providing assistance to obtain any governmental approvals that Chatime deems necessary to comply with legal requirements during the initial term of the franchise agreement. Chatime also has the option to either submit the franchise agreement for registration or approval to any agency or require the franchisee to do so, should Chatime determine it necessary to comply with legal requirements.
If any agency requires amendments to the franchise agreement as a condition of approval or registration, and Chatime finds these amendments acceptable, Chatime will provide the franchisee with an addendum or other documents to execute, reflecting these changes. This ensures that the franchise agreement remains compliant with all applicable laws and regulations throughout the term.