Can Chatime remove the Developer from the Franchisor's website or social media as a remedy for a default?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Chatime has the right to remove a Developer from its website, directory, or social media as a remedy for default. This is one of several remedies Chatime can exercise at its sole discretion instead of, or before, terminating the agreement.
This means that if a Developer defaults on their agreement, Chatime can choose to remove them from any online presence it controls. This could significantly impact the Developer's business, as potential customers may not be able to find them through official Chatime channels. It is important to note that Chatime's decision to exercise this remedy does not waive its right to terminate the agreement or exercise any other rights in the future.
Other remedies Chatime may pursue include reducing the geographic area of the Development Area, removing exclusivity within the Development Area, terminating or suspending services to the Developer, suspending delivery of products or supplies, imposing different credit terms, temporarily operating the Developer's Operation, requiring a Release, and imposing additional requirements for the Developer to continue operating.