What is the Chatime Franchisor required to confirm in writing to the Developer regarding the renewal conditions?

According to the 2025 Chatime Franchise Disclosure Document, as part of the renewal process for a Multi-Unit Development Agreement, Chatime is required to provide written confirmation to the Developer. This confirmation must state that the Developer has satisfied all the conditions outlined in clauses 2.7(3)(a) through 2.7(3)(j) of the agreement. These clauses likely cover various aspects of the Developer's performance and compliance with Chatime's standards.

These conditions probably include, but are not limited to, payment of renewal fees, completion of additional training, execution of updated agreements and releases, adherence to renovation and refurbishment standards for existing outlets, and compliance with legal requirements. The written confirmation from Chatime serves as a formal acknowledgment that the Developer has met all necessary prerequisites for renewal.

If Chatime does not confirm in writing that all conditions are met, or if the conditions are not satisfied or waived before the Initial Term expires, the agreement will terminate. This gives Chatime the freedom to operate or grant franchises to others in the Development Area. This requirement ensures that both parties are aligned on the Developer's fulfillment of obligations before the agreement is extended, protecting Chatime's brand standards and operational consistency.