Which sections of the Chatime Franchise Agreement are deleted according to this amendment?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
ion:
"However, to the extent required by applicable law, all rights you enjoy and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder will remain in force; it being the intent of this provision that the non-waiver provisions of General Business Law §§687.4 and 687.5 be satisfied."
- Clause 25.1 of the Franchise Agreement, "Choice of Law," will be amended by adding the following language at the end of the Clause:
"However, the foregoing choice of law should not be considered a waiver of any right conferred upon the Franchisor or upon the Franchisee by Article 33 of the General Business Law of the State of New York."
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- Sections 20.1(1), (2), and (3), and 20.2(3) of the Franchise Agreement are deleted, and if applicable, Sections 18.1(1), (2) and (3), and 18.2(3) of the Multi-Unit Development Agreement are deleted.
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- No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- Each provision of this Amendment will be effective only to the extent that the jurisdictional requirements of the New York General Business Law, Article 33, §§680 through 695, and of the Codes, Rules, and Regulations of the State of New York, Title 13, Chapter VII, §§200.1 through 201.16, with respect to each such provision, are met independent of the Amendment. This Amendment will have no force or effect if such jurisdictional requirements are not met.
IN WITNESS WHEREOF, the parties hereto have duly executed, sealed, and delivered this Amendment to the Franchise Agreement on the same date as that on which the Franchise Agreement was executed.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, several sections of the Franchise Agreement are deleted or replaced based on the state where the franchise is located. In New York, Exhibit F, the Acknowledgement Addendum to the Franchise Agreement, is deleted, meaning franchisees and their principals are not required to complete and sign it. In Maryland, Exhibit F is also deleted.
In North Dakota, Clause 16.3(2) is deleted and replaced with a clause stating that the arbitration site must be agreeable to all parties and located near the franchisee's business. Parties and witnesses can appear via videoconference unless otherwise agreed. Additionally, Clause 25.9, regarding "Costs and Expenses," is deleted and replaced, detailing that the prevailing party must cover the non-prevailing party's costs, including legal costs, related to franchisee defaults or agreement termination.
Furthermore, in New York, Sections 20.1(1), (2), and (3), and 20.2(3) of the Franchise Agreement are deleted. Similarly, in North Dakota, Sections 21.1(1), (2), and (3), and 21.2(3) of the Franchise Agreement are deleted. These deletions are also mirrored in the Multi-Unit Development Agreement, with corresponding sections being removed. In Maryland, Clauses 18.1(1), (2) and (3), and 18.2(3) of the Multi-Unit Development Agreement are deleted.