If the Chatime Franchise Agreement is translated into another language, which version governs the interpretation of the agreement?

According to the 2025 Chatime Franchise Disclosure Document, if the Franchise Agreement is translated into another language, the English version of the agreement will govern its interpretation. This means that even if a franchisee receives a translated version of the agreement in their local language, the original English version will be the legally binding document used to resolve any disputes or ambiguities.

Chatime requires the franchisee to translate the Franchise Agreement from English into the language(s) of their territory and submit a copy to Chatime for approval. The franchisee is also responsible for translating the Operations Manual and its addendum into the main languages used in their territory. Furthermore, the franchisee bears all costs associated with translating or verifying any translation of the Franchise Agreement and related documents, should such translation be necessary to comply with local legal requirements.

This clause ensures that Chatime maintains a consistent and universally understood agreement across all franchise locations, regardless of the local language. It places the onus on the franchisee to ensure accurate translation for their own operational purposes, while still adhering to the English version as the definitive legal reference. Prospective franchisees should carefully review this section and factor in translation costs and potential discrepancies between the English and translated versions.