Does the Chatime franchisor have any pending actions alleging violation of antitrust or securities law?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided above, with regard to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- A. No such party has an administrative, criminal, or civil action pending against that person alleging a felony, a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
- B. No such party has pending actions, other than routine litigation incidental to the business, which are significant in the context of the number of franchisees and the size, nature, or financial condition of the franchise system or its business operations.
- C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the ten-year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging violation of a franchise, antifraud, or securities law, fraud; embezzlement, fraudulent conversion or misappropriation of property, unfair or deceptive practices, or comparable allegations.
- D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a federal, state, or Canadian franchise, securities, antitrust, trade regulation, or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency, is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange, or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the franchisor, its predecessors, individuals identified in Item 2, or affiliates offering franchises under the Chatime trademark, do not have any pending administrative, criminal, or civil actions alleging violations of franchise, antitrust, or securities laws. This statement confirms that Chatime is not currently involved in any legal disputes related to these specific areas.
Furthermore, the disclosure states that these parties do not have any pending actions, aside from routine litigation incidental to the business, that would be considered significant given the number of franchisees, the size, nature, or financial condition of the franchise system or its business operations. This suggests that while minor legal issues may arise in the course of business, none are substantial enough to pose a systemic risk to the franchise.
Additionally, the disclosure confirms that none of the aforementioned parties have been convicted of a felony or pleaded nolo contendere to a felony charge within the last ten years. They also have not been subject to civil actions alleging violations of franchise, antifraud, or securities laws, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable allegations during that period. This provides assurance that Chatime and its key figures have a clean legal record regarding these serious allegations.
Finally, no party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under federal, state, or Canadian franchise, securities, antitrust, trade regulation, or trade practice law. This includes orders from national securities associations or exchanges, or any injunctive or restrictive order relating to other business activities resulting from actions brought by a public agency. This indicates that Chatime is not operating under any legal constraints that could impact its ability to conduct business or support its franchisees.