Does the provision regarding waiver of claims under state franchise law by Chatime franchisees supersede other terms in documents related to the Chatime franchise?

According to the 2025 Chatime Franchise Disclosure Document, certain addenda address the waiver of claims under state franchise law. For franchisees in Maryland, New York, Virginia, Illinois, and North Dakota, specific amendments clarify that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under applicable state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Chatime or its representatives.

Specifically, these amendments state that this provision supersedes any other term of any document executed in connection with the franchise. This means that any conflicting terms in the franchise agreement or related documents that might suggest a franchisee is waiving their rights under state franchise law are overridden by this provision.

For a prospective Chatime franchisee, this is a beneficial clarification. It ensures that franchisees in these states retain their rights and protections under state franchise laws, regardless of other clauses in the franchise agreement. This protection extends to claims like fraud, where a franchisee might argue they were induced into signing the agreement based on false or misleading information. It is important to note that these protections are specifically outlined for franchisees in Maryland, New York, Virginia, Illinois, and North Dakota, and the FDD does not specify whether similar protections apply in other states.