According to the 2025 Chatime Franchise Disclosure Document, Section 5 of the Multi-Unit Development Agreement pertains to the initial and continuing fees required by the franchisee. Specifically, it details the development fee that the developer must pay to Chatime. This fee is to be paid according to the schedule outlined in Section 6 of Schedule 1 and is typically a lump sum payment due upon signing the Multi-Unit Development Agreement.

The development fee serves as a credit against the initial franchise fee for each Chatime outlet the developer agrees to open. This includes, but is not limited to, the developer's first outlet. Once Chatime receives the development fee, it is considered fully earned and is non-refundable under any circumstances, regardless of the number of outlets the developer actually opens.

In addition to the initial development fee, Section 5 also mentions a "Renewal Development Fee", indicating that continuing fees are also addressed within this section of the agreement. This section is important for prospective multi-unit developers as it clarifies the financial commitments required upfront and the non-refundable nature of the initial investment, which is a common practice in franchising to compensate the franchisor for granting development rights and providing initial support.