Where in the Chatime agreement can I find information about the Developer's development and operational obligations?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
to 2.7(3)(j) have been satisfied.
- (4) If the conditions specified in clauses 2.7(3)(a) to 2.7(3)(j) are not satisfied by the parties or waived by Franchisor prior to the expiration date of the Initial Term, then this Agreement will expire on the expiration date of the Initial Term and Franchisor will be free to operate and grant franchises and development rights for Outlets in the Development Area.
2.8 Collateral Agreements
Developer must comply with all terms and conditions of any Collateral Agreement and acknowledges that a breach of any Collateral Agreement constitutes a breach of this Agreement.
3 Developer's Development and Operational Obligations
3.1 Separate Franchise Agreement for each Outlet
For each Chatime Store to be developed by Developer in the Development Area during the term of this Agreement, Developer shall enter into Franchisor's then-current form of Franchise Agreement, which may contain materially different terms that the current form of Franchise Agreement.
3.2 Site Selection
(1) Franchisor may from time to time modify site selection criteria and processes.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the details of the Developer's development and operational obligations are primarily found in Section 3 of the franchise agreement. This section outlines several key responsibilities, including entering into a separate Franchise Agreement for each Chatime store developed within the designated Development Area. These individual franchise agreements may differ from the standard form.
Site selection is another critical aspect covered, emphasizing that Developers must adhere to Chatime's approved site selection criteria and processes when choosing locations within their Development Area. The agreement also stipulates that Developers must select sites that they reasonably believe align with these criteria. Furthermore, the Developer is obligated to comply with all terms and conditions outlined in any Collateral Agreement associated with the franchise, with any breach of these agreements considered a breach of the overall franchise agreement.
In addition to these specific sections, the FDD also mentions the Developer's ongoing responsibilities to monitor compliance with Chatime's system standards, implement a customer complaint system approved by Chatime, maintain accurate records and reports related to outlet development and operations, and meet the Development Quota for each Development Period. These obligations ensure that the Developer actively promotes the Chatime network and operates outlets in accordance with the brand's standards and expectations.