For Chatime franchises, is the Franchisee and its principals required to complete and sign the Acknowledgement Addendum to Franchise Agreement?
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.
Acknowledgments and Representations
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, whether a franchisee and their principals are required to complete and sign the Acknowledgement Addendum to the Franchise Agreement depends on the state in which the franchise will operate.
Specifically, for franchises operating in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, the franchisee and their principals are not required to complete and sign the Acknowledgement Addendum. This is explicitly stated in addenda for these states, which delete Exhibit F (the Acknowledgement Addendum) from the standard Franchise Disclosure Document.
For locations outside of these listed states, the standard Exhibit F applies, and the franchisee and their principals would typically be required to complete and sign the Acknowledgement Addendum. This addendum aims to confirm that franchisees understand the limitations on claims related to the franchise sale and operation and to identify any unauthorized statements or promises made during the process.