Which sections of the Chatime Franchise Agreement and Multi-Unit Development Agreement are deleted?

According to the 2025 Chatime FDD, several sections of the Franchise Agreement and Multi-Unit Development Agreement are deleted, with specific deletions varying by state. In North Dakota, Clause 16.3(2) of the Franchise Agreement and Clause 14.3(2) of the Multi-Unit Development Agreement are deleted and replaced with language specifying that the arbitration site must be agreeable to all parties and near the franchisee's business, also allowing for appearances by videoconference. Additionally, Clause 25.9 of the Franchise Agreement, regarding "Costs and Expenses," is deleted and replaced with stipulations about the prevailing party covering costs related to franchisee defaults, termination, and enforcement of rights.

In Maryland, Clauses 18.1(1), (2) and (3), and 18.2(3) of the Multi-Unit Development Agreement are deleted. For New York, Sections 20.1(1), (2), and (3), and 20.2(3) of the Franchise Agreement are deleted, along with Sections 18.1(1), (2) and (3), and 18.2(3) of the Multi-Unit Development Agreement, if applicable. In Washington, Exhibit F to the Franchise Disclosure Document, the Acknowledgement Addendum to the Franchise Agreement, is deleted, meaning franchisees and their principals are not required to complete and sign it.

Furthermore, Clause 25.1 of the Franchise Agreement and Clause 23.1 of the Multi-Unit Development Agreement are deleted and replaced with a clause stating that the laws of North Dakota will govern the interpretation and construction of the agreements. Sections 21.1(1), (2), and (3), and 21.2(3) of the Franchise Agreement, along with Sections 19.1(1), (2) and (3), and 19.2(3) of the Multi-Unit Development Agreement, are also deleted. Section 16.4 of the Franchise Agreement and Section 14.4 of the Multi-Unit Development Agreement, entitled "Waiver of Jury Trial," are deleted as well.

These deletions and replacements indicate Chatime's adjustments to comply with specific state franchise laws, particularly concerning dispute resolution, costs and expenses, and waivers of rights. Prospective franchisees should carefully review these amended clauses to understand their rights and obligations, especially regarding legal proceedings and financial responsibilities in case of disputes or termination.