After termination or expiration, is a former Chatime franchisee prohibited from soliciting customers of the Chatime network within a certain timeframe?

According to Chatime's 2025 Franchise Disclosure Document, a former franchisee is restricted from soliciting customers of the Chatime network for a specified period after the termination or expiration of their Franchise Agreement. This restriction is part of what Chatime defines as a "Restraint Period", which lasts for two years.

The Restraint Period applies within the "Restraint Area", defined as either the franchisee's original territory or any area within twenty-five miles of any Chatime store. During this period, the franchisee and any guarantors are prohibited from engaging in any business that supplies similar products or services to those offered by the Chatime network, or that could be considered a competitor.

Specifically, the franchisee cannot solicit anyone who was a customer, employee, or prospective franchisee of Chatime within the twelve months prior to the termination or expiration of the agreement. Additionally, they cannot employ anyone who was employed by Chatime or any other franchisee without prior written consent from Chatime. These restrictions do not apply if the franchisee continues to operate individual Chatime stores under valid Franchise Agreements that have not been terminated and are not in default. It is important to note that these provisions are subject to state law, which may impose additional limitations or requirements.