What should I do if I become aware of a breach or suspected breach of Chatime's confidential information?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
I acknowledge and agree that without prejudice to any right or remedy available to the Franchisee or the Franchisor:
- (a) damages are not an adequate remedy if a person breaches this Agreement;
- (b) the Franchisee or the Franchisor may apply for and obtain, without the necessity
of posting a bond, injunctive relief if:
- (i) a person breaches or threatens to breach any provision of this Agreement; or
- (ii) it believes a person is likely to or threatening to breach any provision of this Agreement.
6. ENFORCEMENT
- (a) Franchisor is a third-party beneficiary of this Agreement and may enforce it, solely and/or jointly with the Franchisee. I am aware that my violation of this Agreement will cause the Franchisor and the Franchisee irreparable harm; therefore, I acknowledge and agree that the Franchisee and/or the Franchisor may apply for the issuance of an injunction preventing me from violating this Agreement, and I agree to pay to the Franchisee and the Franchisor all the costs it/they incur(s), including, without limitation, legal fees and expenses, if this Agreement is enforced against me.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
The 2025 Chatime Franchise Disclosure Document defines confidential information, and outlines the obligations of franchisees regarding that information, but it does not explicitly state the steps a franchisee must take upon discovering a breach or suspected breach.
However, the FDD does state that damages may not be an adequate remedy for breaches of the agreement, and Chatime may seek injunctive relief in the event of a breach or threatened breach. The agreement also states that franchisees acknowledge that violating the agreement will cause irreparable harm to Chatime, and that Chatime may seek an injunction to prevent violations.
Given these stipulations, a franchisee should contact Chatime immediately if they suspect a breach of confidential information.
Because the FDD does not include specific instructions on how to report a breach, prospective franchisees should ask Chatime's franchisor directly about the specific reporting procedures and protocols to follow in such situations. This will ensure they understand their obligations and can act appropriately to protect Chatime's confidential information.