What other remedies besides termination does Chatime have in the event of a default by the Developer?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
13.4 Other Remedies.
In the event of grounds for a default by the Developer, Franchisor is entitled in its sole discretion to exercise any other remedies in lieu of or prior to terminating the Agreement, which may include but are not limited to reduction in the geographic area of the Development Area, removal of exclusivity within the Development Area, termination or suspension of any and all services provided to Developer by Franchisor, its Affiliates, or approved suppliers; suspension of delivery of product or supplies to Developer by Franchisor, its Affiliates, or approved suppliers; imposition of different credit terms for delivery of product or supplies to Developer by Franchisor, its Affiliates or approved suppliers; temporary operation of the Developer's Operation pursuant to this Agreement; removal of Developer from the Franchisor's website, directory, or social media; execution and delivery of a Release, and imposition of any additional or different requirements for Developer to maintain its right to continue operating the Developer's Operation.
Franchisor's exercise of any of these other remedies shall not in any way impair or waive Franchisor's right in the future to terminate the Agreement or to exercise any other rights under this Agreement.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, in the event of a default by the Developer, Chatime has several remedies it can pursue instead of, or before, terminating the agreement. These remedies are at Chatime's sole discretion. They include reducing the geographic area of the Development Area, removing exclusivity within the Development Area, and terminating or suspending any services provided to the Developer by Chatime, its Affiliates, or approved suppliers.
Chatime can also suspend the delivery of product or supplies to the Developer from Chatime, its Affiliates, or approved suppliers. They can impose different credit terms for the delivery of product or supplies. Chatime has the option to temporarily operate the Developer's Operation under the existing agreement. Additionally, Chatime can remove the Developer from its website, directory, or social media platforms.
Chatime may also require the Developer to execute and deliver a Release, and impose additional or different requirements for the Developer to maintain its right to continue operating the Developer's Operation. The FDD specifies that exercising any of these alternative remedies does not prevent Chatime from later deciding to terminate the agreement or pursue other rights under the agreement. This provides Chatime with flexibility in addressing defaults while preserving its options for more severe actions if necessary.