Does the restraint on other business interests apply to a Chatime Developer's continued operation of individual Chatime Stores under valid Franchise Agreements that have not been terminated and are not in default?

According to the 2025 Chatime Franchise Disclosure Document, the restraints on other business interests do not apply to a Developer's continued operation of individual Chatime stores under specific conditions. This exception applies only when the Chatime stores are being operated under valid Franchise Agreements that have not been terminated and are not in default. This means that as long as the Developer is in good standing with their existing franchise agreements, these agreements are not affected by the restraint.

This provision offers a significant benefit to existing Chatime Developers. It allows them to continue operating their current stores without being hindered by new restrictions that might otherwise limit their business activities. This ensures stability and continuity for established franchise locations.

However, it is crucial for Developers to maintain compliance with their existing Franchise Agreements. Any termination or default could nullify this exception, potentially subjecting them to the restraints outlined in the agreement. Therefore, careful management and adherence to the terms of the Franchise Agreement are essential for Chatime Developers to leverage this benefit.