How are the boundaries of a Chatime territory described in the Franchise Agreement?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
The designated territorial rights to the protected territory granted to you under the Franchise Agreement are contingent upon complying with your obligations under the Franchise Agreement. We have the right to terminate or reduce your designated territorial rights or to terminate your Franchise Agreement if you fail to comply with your obligations under the Franchise Agreement.
There is no minimum Territory. Your Territory will typically be a two-mile radius around your approved location, unless your approved location is located in a major metropolitan downtown area or similarly-situated/populated central business district (a "Central Business District"). If your approved location is located in a Central Business District, your Territory may be limited to a geographic area comprised of anywhere from a radius of two blocks to two miles around your approved location, as we deem appropriate in our discretion. The size of your Territory may vary from the territory granted to other franchisees based on the location and demographics surrounding your approved location.
The boundaries of your Territory may be described in terms of zip codes, streets, landmarks (both natural and man-made) or county lines, or otherwise delineated on a map. The sources we use to determine the population within your Territory will be publicly available population information (such as data published by the U.S. Census Bureau or other governmental agencies and commercial sources).
Source: Item 12 — Territory (FDD pages 35–38)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the boundaries of a franchisee's territory are defined in the Franchise Agreement. Chatime does not grant exclusive territories, meaning franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels and competitive brands controlled by Chatime. The grant of territorial rights is contingent on the franchisee's compliance with the Franchise Agreement, and Chatime reserves the right to terminate or reduce these rights if the franchisee fails to meet their obligations.
The typical Chatime territory is a two-mile radius around the approved location. However, for locations in major metropolitan downtown areas or similarly populated central business districts, the territory may be limited to a geographic area ranging from a two-block radius to a two-mile radius, as determined by Chatime. The size of a territory can vary from other franchisees based on the location and demographics surrounding the approved site.
The boundaries of a Chatime territory can be described using various methods, including zip codes, streets, landmarks (both natural and man-made), or county lines, and may also be delineated on a map. Chatime uses publicly available population information, such as data from the U.S. Census Bureau or other governmental agencies and commercial sources, to determine the population within a territory. Prospective franchisees should carefully review and validate any information provided by Chatime regarding the territory, including maps and demographic reports, to assess the potential market and competition in the area.