If I violate the Chatime agreement, will the Franchisor and Franchisee experience irreparable harm?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
- (b) Due to the importance of this Agreement to the Franchisee and the Franchisor, any claim I might have against the Franchisee or the Franchisor is a separate matter and does not entitle me to violate, or justify any violation of this Agreement.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a violation of the franchise agreement will cause irreparable harm to both the Franchisor and Franchisee. Because of this, both the Franchisor and Franchisee may seek an injunction preventing further violations of the agreement.
Furthermore, if Chatime or the franchisee has to take legal action to enforce the agreement, the franchisee is responsible for covering all associated costs, including legal fees and expenses. This highlights the importance of adhering to the franchise agreement to avoid potential legal and financial repercussions.
The agreement also states that any claims a franchisee might have against Chatime or another franchisee do not justify violating the franchise agreement. This underscores the need to address grievances through appropriate channels rather than resorting to breaches of contract. This clause emphasizes the binding nature of the agreement and the expected adherence to its terms, irrespective of any disputes that may arise.