Under what condition does the amendment to the Chatime Multi-Unit Development Agreement regarding Maryland Franchise Law have no force or effect?

According to Chatime's 2025 Franchise Disclosure Document, the Maryland Amendment to the Chatime Multi-Unit Development Agreement will have no force or effect if the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law are not met independently of the amendment. This means that each provision within the amendment must individually satisfy the legal requirements of Maryland franchise law without relying on the amendment itself to meet those requirements.

For a prospective Chatime franchisee, this condition is crucial because it determines the enforceability of the protections and modifications provided by the amendment. If the jurisdictional requirements are not met, the franchisee cannot depend on the amendment's clauses, such as those related to waivers, dispute resolution, or the application of Maryland franchise law.

This stipulation ensures that the amendment's provisions are firmly grounded in Maryland law, offering franchisees genuine and enforceable rights. It also places a responsibility on both Chatime and the franchisee to ensure that all aspects of their agreement comply with Maryland law, independent of any amendments. Franchisees should seek legal counsel to verify that these jurisdictional requirements are indeed met, ensuring the amendment's effectiveness and safeguarding their rights under the franchise agreement.