Is construction due diligence always required when establishing a Chatime store?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to require you to purchase any items or services necessary to operate your Chatime Store. Currently, we have approved suppliers for the following items: (i) food products and ingredients; (ii) real estate and construction management services; (iii) construction due diligence (unless proposed site does not require such due diligence); (iv) architectural, engineering and design services related to the establishment of your Chatime Store; (v) construction site visits; (vi) signage; (vii) furniture and equipment that must be used in connection with the operation of the Chatime Store; (viii) technology set-up and ongoing services; (viii) branded and proprietary ingredients, inventory and supplies; (ix) payroll and rostering services; (x) human resource services; and (xi) initial local marketing and location launch events. Certain food products that easily spoil (e.g., fresh fruits and milk) may be purchased by you locally with our prior approval.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–25)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, construction due diligence is not always required. Chatime has approved suppliers for real estate and construction management services, including construction due diligence. However, construction due diligence is only required unless the proposed site does not require such due diligence.
Chatime franchisees are required to purchase items and services necessary to establish and operate their Chatime store from approved or designated suppliers, which may include Chatime or its affiliates. This includes construction due diligence, when required. The FDD specifies that Chatime has approved suppliers for construction due diligence, architectural, engineering, and design services related to establishing a Chatime store, and construction site visits.
Prospective franchisees should clarify with Chatime under what specific circumstances construction due diligence is deemed unnecessary for a proposed site. Understanding these conditions will help franchisees budget appropriately for pre-opening expenses and navigate the site selection process effectively.