Under what circumstances can Chatime enter the leased premises without consent?

According to Chatime's 2025 Franchise Disclosure Document, Chatime, as the Franchisor, has specific rights regarding entry to the leased premises of a Chatime store. Chatime may enter the leased premises without the consent of the landlord or the tenant (the franchisee) under two specific conditions. These conditions are to make any modification necessary to protect Chatime's proprietary system or marks, or to cure any default under the Franchise Agreement or under the Lease.

This provision is included in the Lease Addendum to protect Chatime's brand standards and ensure compliance with the franchise agreement. The right of entry allows Chatime to take swift action if a franchisee is not adhering to the brand's standards or is in default of their agreement, which could negatively impact the brand's reputation. This clause also protects Chatime's trademarks and proprietary systems, ensuring that the franchisee operates within the bounds of the franchise agreement and maintains the integrity of the Chatime brand.

For a prospective franchisee, this means that Chatime retains a degree of control over the physical premises of the franchise. While the franchisee typically manages the day-to-day operations, Chatime can intervene to ensure compliance and protect its interests. It is important for franchisees to understand these conditions and maintain open communication with Chatime to avoid situations where Chatime needs to exercise its right of entry. Franchisees should also be aware of what constitutes a default under the Franchise Agreement or the Lease to avoid potential issues.