Can Chatime terminate the franchise agreement if the franchised business is operated in a way that endangers public health or safety?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) Notwithstanding any other provision in this clause 15, Franchisor may terminate this Agreement immediately upon written notice to Franchisee if:
- (f) The Franchised Business is operated in a way that endangers public health or safety;
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, Chatime can terminate the franchise agreement immediately with written notice to the franchisee if the franchised business is operated in a way that endangers public health or safety.
This means that Chatime has the right to immediately end the agreement if the franchisee's actions or inactions at the Chatime store pose a risk to the health or safety of the public. This could include violations of health codes, unsafe food handling practices, or any other operations that could potentially harm customers or the community.
This clause underscores the importance of adhering to Chatime's standards and all applicable regulations to maintain a safe environment for customers. Franchisees should prioritize safety and compliance to avoid the risk of immediate termination of their franchise agreement.