Under what state's laws will the Chatime agreement be construed?

According to the 2025 Chatime FDD, the franchise agreement will be governed by and construed in accordance with the laws of the State of Delaware. This is according to item 16, Applicable Law, of the franchise agreement.

However, the FDD also includes amendments for franchisees in New York and Illinois. For New York franchisees, the choice of law should not be considered a waiver of any right conferred upon the Franchisor or upon the Franchisee by Article 33 of the General Business Law of the State of New York. For Illinois franchisees, Illinois law governs the Franchise Agreement.

For prospective franchisees, this means that while the standard Chatime agreement is generally interpreted under Delaware law, franchisees operating in states like New York and Illinois may have specific protections and interpretations of the agreement that are governed by their respective state laws. This ensures that franchisees' rights under local franchise laws are not waived by the general choice of law provision.