According to the 2025 Chatime Franchise Disclosure Document, the franchise agreement is governed by Illinois law. Specifically, the Illinois Amendment to the Chatime Franchise Agreement states that Illinois law governs the agreement.

This means that the laws of Illinois will be used to interpret and enforce the franchise agreement. Any disputes that arise between Chatime and a franchisee will be subject to Illinois law. This is a significant factor for prospective franchisees to consider, especially if they are not located in Illinois, as they may need to familiarize themselves with Illinois franchise law.

However, it's important to note that certain states, such as Maryland, New York, and North Dakota, have specific amendments to the Chatime franchise agreement that may override the general choice of law provision. For example, the Maryland amendment allows franchisees in Maryland to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, regardless of the general choice of law. Similarly, the New York amendment ensures that the choice of law does not waive any rights conferred by the New York General Business Law. North Dakota does not allow franchise agreements to specify that they are to be governed by the laws of a state other than North Dakota.

Therefore, prospective Chatime franchisees should carefully review the specific amendments and addenda applicable to their state to understand their rights and obligations under the franchise agreement. They should also consult with an attorney to ensure they fully understand the implications of the choice of law provision and any state-specific amendments.