How long does Chatime have to remedy a breach of the multi-unit development agreement after receiving notice from the franchisee?

Question

Accepted Answer

| Provision | Section in Franchise | Summary |
|---|---|---|
|  | Agreement (FA) and Multi-Unit Development Agreement (MDA) |  |
| a. Length of the | FA: §1.1(27) | The term is ten years. |
| franchise term |  |  |
|  | MDA: §1.1(34) | The period ending the end date of the agreed Development Period. . |
| b. Renewal or extension of the term | FA: §1.1(40); §2.6 | At the end of the initial term of your Franchise Agreement, we may grant you the option to continue operating as a franchisee in your Territory and to enter into a new Franchise Agreement for a renewal term of ten years. |
|  | MDA: § 2.7 | At the end of the initial term of your Franchise Agreement, you may request to enter into an additional term of ten years under the terms of our then-current form of multi-unit development agreement, which may contain different terms |
| u. Dispute resolution by arbitration or mediation | §16 | Except as otherwise provided, all disputes and claims relating to your Franchise Agreement or the relationship of the parties must be settled by mediation or arbitration in New York in accordance with the rules of the American Arbitration Association (“AAA”) mediation and arbitration service. These provisions are subject to state law. |
|  | MDA: §14 | Except as otherwise provided, all disputes and claims relating to your MDA or the relationship of the parties must be settled by mediation or arbitration in New York in accordance with the rules of the AAA mediation and arbitration service. These provisions are subject to state law |
| v. Choice of forum | §16 | Arbitration in New York in accordance with the rules of the AAA service. These provisions are subject to state law. |
|  | MDA: §14 | Arbitration in New York in accordance with the rules of the AAA service. These provisions are subject to state law. |
| w. Choice of law | §25.1 | Delaware law. These provisions are subject to state law. |
|  | MDA: §23.16 | Delaware law. These provisions are subject to state law |
| d. Termination by franchisee | FA: §15.1; §15.2 | You may terminate your Franchise Agreement if (i) you give us written notice of termination within seven days after execution, or (ii) you are in substantial compliance with the Franchise Agreement, we materially breach the Franchise Agreement, you notify us of such breach and give us at least 60 days to remedy the breach, we do not timely remedy the breach or we fail to show continuing efforts to correct the breach, and you provide 60 days' written notice of termination. These provisions are subject to state law. |
|  | MDA: § 13.1 and 13.2 | You may terminate your MDA if (i) you give us written notice of termination within seven days after execution, or (ii) you are in substantial compliance with the MDA, we materially breach the MDA, you notify us of such breach and give us at least 60 days to remedy the breach, we do not timely remedy the breach or we fail to show continuing efforts to correct the breach, and you provide 60 days' written notice of termination. These provisions are subject to state law. |
| e. Termination by franchisor without | FA: Not applicable | Not applicable. |
| "cause" | MDA: Not applicable | Not applicable |
| f. Termination by franchisor with "cause" | FA: §15.3 | We have the right to terminate your Franchise Agreement with cause. Depending upon the reason for termination, we may not provide you with an opportunity to cure. |
|  | MDA: § 13.3 | We have the right to terminate your MDA with cause. Depending upon the reason for termination, we may not provide you with an opportunity to cure. |
| g. Curable defaults | FA: §15.3(1) | All defaults must be cured within 30 days after notice. |
|  | MDA: § 13.3(1) | All defaults must be cured within 30 days after notice. |
| h. n-curable defaults | FA: §15.3(4)  | We may terminate your Franchise Agreement immediately upon written notice to you if (i) you or a guarantor breach any provision under Clauses 6, 9.2, or 9.3 of your Franchise Agreement, (ii) a force majeure event continues for more than 180 days, (iii) you no longer hold a license required to carry on your franchise business, (iv) you voluntarily abandon your franchise business, (v) you or a guarantor are convicted of a serious offense, (vi) your operations endanger public health or safety, (vii) you are fraudulent in connection with your operations or commit a fraud upon us, or (viii) you voluntarily petition in bankruptcy, are adjudicated a bankrupt or insolvent, or a receiver, manager, liquidator, or other person is appointed for a substantial part of your assets.

Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 43–52)

How long does Chatime have to remedy a breach of the multi-unit development agreement after receiving notice from the franchisee?

Answer from 2025 FDD Document

What This Means (2025 FDD)

Provision	Section in Franchise	Summary
	Agreement (FA) and Multi-Unit Development Agreement (MDA)
a. Length of the	FA: §1.1(27)	The term is ten years.
franchise term
	MDA: §1.1(34)	The period ending the end date of the agreed Development Period. .
b. Renewal or extension of the term	FA: §1.1(40); §2.6	At the end of the initial term of your Franchise Agreement, we may grant you the option to continue operating as a franchisee in your Territory and to enter into a new Franchise Agreement for a renewal term of ten years.
	MDA: § 2.7	At the end of the initial term of your Franchise Agreement, you may request to enter into an additional term of ten years under the terms of our then-current form of multi-unit development agreement, which may contain different terms
u. Dispute resolution by arbitration or mediation	§16	Except as otherwise provided, all disputes and claims relating to your Franchise Agreement or the relationship of the parties must be settled by mediation or arbitration in New York in accordance with the rules of the American Arbitration Association (“AAA”) mediation and arbitration service. These provisions are subject to state law.
	MDA: §14	Except as otherwise provided, all disputes and claims relating to your MDA or the relationship of the parties must be settled by mediation or arbitration in New York in accordance with the rules of the AAA mediation and arbitration service. These provisions are subject to state law
v. Choice of forum	§16	Arbitration in New York in accordance with the rules of the AAA service. These provisions are subject to state law.
	MDA: §14	Arbitration in New York in accordance with the rules of the AAA service. These provisions are subject to state law.
w. Choice of law	§25.1	Delaware law. These provisions are subject to state law.
	MDA: §23.16	Delaware law. These provisions are subject to state law
d. Termination by franchisee	FA: §15.1; §15.2	You may terminate your Franchise Agreement if (i) you give us written notice of termination within seven days after execution, or (ii) you are in substantial compliance with the Franchise Agreement, we materially breach the Franchise Agreement, you notify us of such breach and give us at least 60 days to remedy the breach, we do not timely remedy the breach or we fail to show continuing efforts to correct the breach, and you provide 60 days' written notice of termination. These provisions are subject to state law.
	MDA: § 13.1 and 13.2	You may terminate your MDA if (i) you give us written notice of termination within seven days after execution, or (ii) you are in substantial compliance with the MDA, we materially breach the MDA, you notify us of such breach and give us at least 60 days to remedy the breach, we do not timely remedy the breach or we fail to show continuing efforts to correct the breach, and you provide 60 days' written notice of termination. These provisions are subject to state law.
e. Termination by franchisor without	FA: Not applicable	Not applicable.
"cause"	MDA: Not applicable	Not applicable
f. Termination by franchisor with "cause"	FA: §15.3	We have the right to terminate your Franchise Agreement with cause. Depending upon the reason for termination, we may not provide you with an opportunity to cure.
	MDA: § 13.3	We have the right to terminate your MDA with cause. Depending upon the reason for termination, we may not provide you with an opportunity to cure.
g. Curable defaults	FA: §15.3(1)	All defaults must be cured within 30 days after notice.
	MDA: § 13.3(1)	All defaults must be cured within 30 days after notice.
h. n-curable defaults	FA: §15.3(4)	We may terminate your Franchise Agreement immediately upon written notice to you if (i) you or a guarantor breach any provision under Clauses 6, 9.2, or 9.3 of your Franchise Agreement, (ii) a force majeure event continues for more than 180 days, (iii) you no longer hold a license required to carry on your franchise business, (iv) you voluntarily abandon your franchise business, (v) you or a guarantor are convicted of a serious offense, (vi) your operations endanger public health or safety, (vii) you are fraudulent in connection with your operations or commit a fraud upon us, or (viii) you voluntarily petition in bankruptcy, are adjudicated a bankrupt or insolvent, or a receiver, manager, liquidator, or other person is appointed for a substantial part of your assets.