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

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 all interpretations. Chatime requires the franchisee to translate the agreement from English into the language of their territory at their own cost and submit a copy to Chatime for approval. The franchisee is also responsible for translating the Operations Manual and any addendums into the main languages used in their territory.

Furthermore, the franchisee must cover all of Chatime's costs associated with translating or verifying any translation of the Franchise Agreement and related documents if such translation is required to comply with legal requirements in the territory. This ensures that Chatime maintains control over the interpretation of the agreement, regardless of any translations that may be required for local compliance or operational purposes.

This clause is significant for prospective franchisees as it clarifies that while translations may be necessary for local operations or legal compliance, the English version of the Franchise Agreement remains the definitive source for interpreting the contractual obligations and rights of both parties. Franchisees need to be aware of this provision, especially if their primary language differs from English, as any disputes or ambiguities will be resolved based on the English version of the agreement.