Are there any state-specific addenda included as exhibits in the Chatime FDD?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit E Addenda Required by State(s)
Source: Item 22 — Contracts (FDD page 58)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the FDD includes state-specific addenda as exhibits. Specifically, Exhibit E is designated as "Addenda Required by State(s)". This indicates that Chatime includes addenda to its franchise agreement that are mandated by the franchise laws of certain states.
For a prospective Chatime franchisee, this means that the franchise agreement they sign may have additional terms and conditions depending on the state in which they are opening their franchise. These state-specific addenda are designed to ensure that the franchise agreement complies with local laws and regulations, which can vary significantly from state to state.
It is important for potential franchisees to carefully review Exhibit E and any other state-specific addenda that apply to their location. Franchisees should seek legal counsel to understand the implications of these addenda and how they may affect their rights and obligations under the franchise agreement. This is a fairly standard practice in franchising, as franchise laws are state-specific, and franchisors must tailor their agreements to comply with these varying regulations.