According to the 2025 Chatime Franchise Disclosure Document, under the section "Force Majeure," a party, referred to as the "Affected Party," will not be held responsible for any delays or failures in fulfilling their obligations under the agreement, except for the obligation to pay money, if these issues are caused by specific events. These events include acts of God, war, terrorism, riot, insurrection, vandalism, or sabotage. The clause also covers disruptions caused by strikes, lockouts, work limitations, or other industrial disturbances. Finally, it includes any law, rule, or regulation from a government or governmental agency, as well as executive or administrative orders.

For a prospective Chatime franchisee, this means that if unforeseen circumstances like a natural disaster or government regulation prevent them from meeting certain obligations outlined in the franchise agreement (excluding payment obligations), they may not be held liable for the delay or failure. However, the franchisee must promptly notify the other party of any anticipated delay or failure caused by such an event.

This "Force Majeure" clause provides a degree of protection for both Chatime and its franchisees against circumstances beyond their control. It's a fairly standard provision in franchise agreements, designed to allocate risk in the face of unpredictable events. However, it's crucial to note that this protection does not extend to payment obligations; franchisees are still expected to meet their financial commitments regardless of these events. The franchisee should carefully review the definition of events that qualify as "Force Majeure" to understand the scope of this protection.