Who is the regulatory authority for Chatime franchises in Virginia?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
VIRGINIA
VIRGINIA ADDENDUM TO THE CHATIME FRANCHISE, LLC FRANCHISE DISCLOSURE DOCUMENT
In recognition of the requirements of the Virginia State Corporation Commission, the Chatime Franchise, LLC Franchise Disclosure Document for use in the State of Virginia will be amended to include the following:
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- Exhibit F to the Franchise Disclosure Document (Acknowledgement Addendum to Franchise Agreement) is deleted. Franchisee and its principals are not required to complete and sign the Acknowledgement Addendum.
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- No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
VIRGINIA AMENDMENT TO THE CHATIME FRANCHISE, LLC FRANCHISE AGREEMENT
In recognition of the requirements of the Virginia State Corporation Commission, the parties to the attached Chatime Franchise, LLC Franchise Agreement (the "Franchise Agreement") agree as follows:
- No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the regulatory authority for Chatime franchises in Virginia is the Virginia State Corporation Commission. This is explicitly stated in the Virginia Addendum to the Chatime Franchise Disclosure Document and the Virginia Amendment to the Chatime Franchise Agreement. Both documents acknowledge the requirements set forth by this commission.
Specifically, the Virginia Addendum modifies aspects of the standard franchise agreement to comply with Virginia regulations. For example, it removes the requirement for franchisees to sign the Acknowledgement Addendum (Exhibit F), ensuring that franchisees do not inadvertently waive rights under Virginia franchise law or disclaim reliance on franchisor statements. This indicates that the Virginia State Corporation Commission has specific rules and regulations that Chatime must adhere to when offering franchises in Virginia.
The Virginia Amendment to the Chatime Franchise Agreement reinforces this by stating that no franchisee statement can waive claims under Virginia franchise law. This further emphasizes the Virginia State Corporation Commission's role in protecting franchisees' rights within the state. Prospective franchisees in Virginia should be aware of these protections and understand that the Virginia State Corporation Commission oversees franchise operations to ensure compliance with state laws.
Therefore, any concerns or questions regarding franchise regulations and compliance in Virginia should be directed to the Virginia State Corporation Commission, as they are the primary regulatory body overseeing Chatime franchises within the state.