On what page of the Chatime FDD can I find information about acknowledgements, representations, and warranties related to a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit F to the Franchise Disclosure Document
ACKNOWLEDGMENT ADDENDUM TO CHATIME FRANCHISE, LLC FRANCHISE AGREEMENT
[Do not sign this Acknowledgement Addendum if you are resident of California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, or the business is to be operated in any of these states].
As you know, you and we are entering into a Franchise Agreement for the operation of a Chatime franchise. The purpose of this Acknowledgment Addendum is to determine whether any statements or promises were made to you that we have not authorized or that may be untrue, inaccurate or misleading, and to be certain that you understand the limitations on claims that may be made by you by reason of the offer and sale of the franchise and operation of your business. Please review each of the following questions carefully and provide honest responses to each question.
Acknowledgments and Representations
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, Exhibit F contains an Acknowledgment Addendum to the Chatime Franchise Agreement. This addendum is designed to confirm whether any unauthorized statements or promises were made to the prospective franchisee during the franchise sales process. It also ensures the franchisee understands the limitations on claims related to the franchise offering and business operation.
The Acknowledgment Addendum includes a series of questions for the prospective franchisee to answer, verifying that they have not received any claims, statements, promises, or representations regarding potential sales, revenues, expenses, earnings, income, or profit levels that are not stated in Item 19 of the FDD. It also addresses whether any statements or promises were made about the costs involved in operating the franchise that contradict the information in the FDD.
Notably, the addendum includes an explicit disclaimer for residents of certain states, including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin, or if the business is to be operated in any of these states. This means that franchisees in those states are not required to sign the Acknowledgment Addendum, potentially due to specific state franchise laws. Additionally, the franchisee must acknowledge their understanding that Chatime has the right to issue other franchises or operate competing businesses at locations of their choosing, as described in the Franchise Agreement, and that the Franchise Agreement and Franchise Disclosure Document constitute the entire agreement between the franchisee and Chatime.