What is the additional fee for each Chatime location beyond three under a multi-unit development agreement?

According to Chatime's 2025 Franchise Disclosure Document, franchisees who enter into a multi-unit development agreement to open more than three locations will pay an additional fee. Specifically, after the initial fee of $134,900 for the first three locations, Chatime charges an additional $20,000 for each subsequent location. For example, the total multi-unit development fee for ten locations is $274,900. This fee is non-refundable once paid to Chatime, regardless of how many units the franchisee ultimately opens.

This multi-unit development fee structure incentivizes franchisees to commit to opening multiple Chatime locations. The initial fee covers the first three locations, and then a set fee is applied for each additional location. This can be advantageous for franchisees looking to expand rapidly within a specific geographic area, as it provides a pre-negotiated cost structure for future units.

However, prospective Chatime franchisees should carefully consider the implications of this non-refundable fee. If a franchisee commits to opening a certain number of locations but is unable to fulfill that commitment due to unforeseen circumstances, they will not receive a refund of the multi-unit development fee. Therefore, it is crucial to conduct thorough market research and develop a realistic business plan before entering into a multi-unit development agreement with Chatime. Franchisees should also be aware that they will have to sign a separate individual unit franchise agreement for each location, which may be different than the current form of franchise agreement.