Which articles in the Chatime Multi-Unit Development Agreement address territorial development and sales quotas?

According to Chatime's 2025 Franchise Disclosure Document, Article 2 and Schedule 1 of the Multi-Unit Development Agreement (MDA) outline the franchisee's obligations regarding territorial development and sales quotas. This information is crucial for prospective multi-unit developers as it defines the geographic area they are responsible for developing and the minimum sales targets they must achieve. Understanding these terms is essential for assessing the feasibility and profitability of the development agreement.

Specifically, Article 2 likely details the geographic boundaries of the development territory granted to the franchisee, while Schedule 1 probably contains the specific sales quotas or development milestones that the franchisee must meet within a given timeframe. These quotas could be based on factors such as the number of Chatime stores to be opened, total revenue generated, or market penetration achieved within the territory.

Prospective Chatime franchisees should carefully review Article 2 and Schedule 1 of the MDA to fully understand their development obligations and sales targets. They should also consider factors such as market demographics, competition, and local economic conditions when evaluating the feasibility of meeting these requirements. Failure to meet the development schedule or sales quotas could result in penalties or termination of the agreement, so it is important to conduct thorough due diligence before signing the MDA.