When constructing a Chatime outlet, what must the franchisee ensure compliance with?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
4.11 Construction of the Outlet
(1) Franchisee is responsible for the construction and development of the Outlet in accordance with the System Standards. All plans and specifications for the Outlet must, if required by Franchisor, be approved by Franchisor.
(2) Franchisee must use Franchisor's approved suppliers for real estate and construction management services, construction due diligence, architectural, engineering and design services, construction permit acquisition and management services, and construction site visits, in connection with the construction and development of the Outlet. All construction of the Outlet under this Agreement must be undertaken by competent and licensed building contractors and subcontractors.
(3) Franchisor may, in its sole discretion, approve or not approve an application for designing the interior and exterior of the Outlet.
(4) In the construction of the Outlet in the Territory, Franchisee must ensure that it complies with:
(a) Franchisor's System Standards in relation to the construction of the Outlet; and
(b) All Legal Requirements, including applicable ordinances, building codes and permit requirements and with lease requirements and restrictions.
(5) Franchisee must obtain Franchisor's written approval of any material revision or adaptation of Franchisee's plans and specifications, previously approved by Franchisor (Approved Plans). Franchisor must approve or disapprove any changes to the Approved Plans within 10 Business Days from receipt of the proposed changes.
If Franchisor approves any revision or adaptation of the construction plans and specifications, upon completion of construction, Franchisee must provide Franchisor with a set of "as built" plans and specifications.
4.12 Acknowledgment
Franchisee acknowledges that Franchisor has the right, but no obligation, to approve architects and other design and construction professionals to help ensure consistency, uniformity, and quality with the System and the Chatime image.
4.13 Franchisor's Inspection Rights
Franchisor, its Affiliates, consultants, and agents have the right to inspect the Outlet and the construction work from time to time during the course of construction to verify the progress of construction and Franchisee's compliance with the terms of this Agreement.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a franchisee is responsible for the construction and development of their outlet and must ensure compliance with specific requirements. The franchisee must adhere to Chatime's System Standards for construction, and all plans and specifications may require approval from Chatime. Franchisees are required to use Chatime's approved suppliers for services such as real estate, construction management, architectural design, engineering, and permit acquisition. Furthermore, construction must be performed by licensed and competent contractors and subcontractors.
During the construction of the Chatime outlet, the franchisee must comply with Chatime's System Standards and all legal requirements, including applicable ordinances, building codes, permit requirements, and lease restrictions. Any material revisions or adaptations to previously approved plans require Chatime's written approval, which Chatime must either approve or disapprove within 10 business days of receiving the proposed changes. Upon completion of construction, the franchisee must provide Chatime with a set of "as built" plans and specifications if any revisions were made.
Chatime retains the right to inspect the outlet and construction work to verify progress and compliance with the franchise agreement terms. Chatime also has the right, but not the obligation, to approve architects and other design and construction professionals to ensure consistency and quality with the Chatime system and image. These measures ensure that each Chatime outlet aligns with the brand's standards and legal requirements, maintaining uniformity and quality across all locations.