What approval is required from Chatime for each outlet location within my Development Territory?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Outlet's location in your Development Territory must be approved by us in writing and meet our then-current real estate, brand and design standards. We will approve each additional location under the Multi-Unit Development Agreement using our then-current site criteria. For each Outlet, you must comply with all your obligations to us and sign our then-current form of the Franchise Agreement with all then-current ongoing fees. The then-current Franchise Agreement may contain materially different terms and conditions than your original Franchise Agreement.
If you do not continue to meet our then-current guidelines for multi-unit development and ownership, we may terminate your Development Rights, vary your Development Territory, and/or terminate the exclusivity attached to the Development Rights in our discretion (following which we may ourselves develop and operate franchises in your Development Territory or may grant a right to a third party to develop and operate franchises in your Development Territory).
Source: Item 12 — Territory (FDD pages 35–38)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, if you sign a Multi-Unit Development Agreement, each outlet location within your Development Territory requires written approval from Chatime. The location must also meet Chatime's real estate, brand, and design standards that are current at the time of approval. Chatime will assess each additional location based on their site criteria in effect at that time.
Furthermore, for each outlet, you must fulfill all obligations to Chatime and sign the then-current form of the Franchise Agreement, which includes all ongoing fees applicable at that time. It's important to note that the terms and conditions of the Franchise Agreement in effect at the time of each new outlet may differ materially from those in your original Franchise Agreement.
If you fail to meet Chatime's guidelines for multi-unit development and ownership, Chatime has the right to terminate your Development Rights, modify your Development Territory, and/or terminate the exclusivity attached to your Development Rights. This means Chatime could develop and operate franchises themselves or grant the right to a third party to do so within your Development Territory.