Is Chatime's right to inspect and audit in addition to other rights?

According to Chatime's 2025 Franchise Disclosure Document, the franchisor's right to inspect and audit a franchisee's business records and premises is in addition to any other legal remedies or rights Chatime possesses. This means that Chatime can pursue inspections and audits without affecting its ability to exercise other contractual or legal rights.

Chatime, or its agents, can inspect and audit the franchisee's records and reports during normal business hours. They can also inspect the premises of the outlet to monitor compliance with the franchise agreement and verify financial information. If an audit reveals an understatement of fees, the franchisee must pay the due fees plus interest.

Furthermore, if the understatement of fees exceeds 2% or if the audit was required due to the franchisee's failure to provide necessary reports or information, the franchisee must reimburse Chatime for the cost of the inspection or audit. This includes legal and accounting fees, as well as travel and accommodation expenses for Chatime's employees. This clause reinforces Chatime's ability to ensure compliance and protect its financial interests, while also placing the financial burden of non-compliance on the franchisee.