What representation do the Chatime Developer and Guarantor make regarding the information provided to Franchisor in support of the application to acquire the Development Business?

According to Chatime's 2025 Franchise Disclosure Document, the Developer and Guarantor represent to Chatime that all information provided in support of the Developer's application to acquire the Development Business is complete, true, and correct. This representation specifically covers information related to the Developer's financial capacity, resources, business experience, and skills.

This means that Chatime relies on the accuracy of the information provided by the Developer and Guarantor when deciding whether to grant the Development Business. If the information is later found to be false or misleading, it could have legal consequences for the Developer and Guarantor. This is a standard practice in franchising, as franchisors need to assess the qualifications and capabilities of potential developers to ensure they can successfully operate and expand the brand.

For a prospective Chatime franchisee, this highlights the importance of providing accurate and truthful information during the application process. Any misrepresentation or omission could jeopardize the application or lead to future legal issues. It also underscores the need for thorough due diligence on the part of both Chatime and the prospective developer to verify the accuracy of the information provided.