For Chatime, if there are additional franchise sellers involved beyond those initially identified, is the franchisee required to identify them?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the Washington Franchise Investment Protection Act, RCW §§19.100.010 through 19.100.940, the Chatime Franchise, LLC Franchise Disclosure Document for the offer and sale of franchises in the State of Washington will be amended as follows:
The Disclosure Document is amended to add the following risk factor:
- "Use of Franchise Brokers.
The franchisor uses the services of franchise brokers to assist it in selling franchises.
A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise.
Carefully evaluate any information provided by a franchise broker about a franchise.
Do your own investigation by contacting the franchisor's current and former franchisees to ask them about their experience with the franchisor."
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
The 2025 Chatime Franchise Disclosure Document includes a Washington addendum that addresses the use of franchise brokers. Specifically, it states that Chatime uses the services of franchise brokers to assist in selling franchises. The addendum clarifies that a franchise broker represents Chatime and is paid a fee for referring prospects or selling the franchise.
This disclosure is particularly relevant for prospective franchisees in Washington because it highlights the importance of independently verifying information provided by franchise brokers. The addendum advises potential franchisees to conduct their own investigations by contacting current and former Chatime franchisees to inquire about their experiences with the franchisor. This proactive approach helps ensure that franchisees make informed decisions based on direct feedback from those already operating within the Chatime system.
While the addendum acknowledges the role of franchise brokers, it does not explicitly state whether a franchisee is required to identify additional franchise sellers involved beyond those initially identified. However, the emphasis on independent investigation suggests that franchisees should be diligent in identifying and evaluating all parties involved in the franchise sales process to ensure transparency and informed decision-making.