If an agency requires amendments to the Franchise Agreement for approval, what will Chatime deliver to the franchisee for execution?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
igned or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Each provision of this Addendum will be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Illinois Franchise Disclosure Act of 1987 are met independently without reference to this Addendum.
ILLINOIS AMENDMENT TO THE CHATIME FRANCHISE, LLC FRANCHISE AGREEMENT
In recognition of the requirements of the Illinois Franchise Disclosure Act of 1987, the parties to the Chatime Franchise, LLC Franchise Agreement (the "Franchise Agreement") agree as follows:
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- Illinois law governs the Franchise Agreement.
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- In conformance with §4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction or venue in a forum outside the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
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- Your rights upon Termination and Non-Renewal are set forth in §§19 and 20 of the Illinois Franchise Disclosure Act.
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- In conformance with §41 of the Illinois Franchise Disclosure Act, any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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- No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
IN WITNESS WHEREOF, the parties hereto have duly executed, sealed, and delivered this Amendment to the Franchise Agreement on the same date as that on which the Franchise Agreement was executed.
| CHATIME FRANCHISE, LLC | FRANCHISEE |
|---|---|
| ------------------------------ | ------------ |
| By: | By: |
|---|---|
| Name: | Name: |
| Title: | Title: |
ILLINOIS AMENDMENT TO THE CHATIME FRANCHISE, LLC MULTI-UNIT DEVELOPMENT AGREEMENT
In recognition of the requirements of the Illinois Franchise Disclosure Act of 1987, the parties to the Chatime Franchise, LLC Multi-Unit Development Agreement (the "Multi-Unit Development Agreement") agree as follows:
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- Illinois law governs the Multi-Unit Development Agreement.
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- In conformance with §4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction or venue in a forum outside the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
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- Your rights upon Termination and Non-Renewal are set forth in §§19 and 20 of the Illinois Franchise Disclosure Act.
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- In conformance with §41 of the Illinois Franchise Disclosure Act, any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime FDD, several states require specific amendments to the standard franchise agreement to comply with their franchise laws. For example, the FDD includes amendments for Illinois, New York, Maryland, and Minnesota. These amendments address issues such as choice of law, choice of forum, termination rights, and waivers of legal rights.
For instance, the Illinois amendment specifies that Illinois law governs the Franchise Agreement and voids any provision designating jurisdiction or venue outside of Illinois. Similarly, the New York amendment ensures that the franchisee's rights under New York General Business Law are not waived. The Maryland amendment clarifies that general releases required for renewal or transfer do not apply to liabilities under Maryland franchise law. The Minnesota addendum specifies that any general release will not apply to any liability under the Minnesota Franchise Law.
In each case, Chatime provides a specific amendment document that both the franchisor and franchisee must execute. These amendments are designed to ensure that the franchise agreement complies with local laws and protects the franchisee's rights within those jurisdictions. The amendments typically include clauses that modify or supersede conflicting terms in the standard franchise agreement.