What costs are included in the leasehold improvement costs for a Chatime store?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Leasehold improvement costs include, without limitation, architectural, project management, design, construction, engineering, and legal fees and are net of tenant lease incentive payments where applicable.
These estimates do not include extraordinary costs due to extensive redesign, landlord works, permitting, variances, environmental issues, legal obstacles, etc.
Source: Item 7 — Estimated Initial Investment (FDD pages 17–22)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, leasehold improvement costs can range from $135,000 to $226,000. These costs include architectural, project management, design, construction, engineering, and legal fees, and are net of tenant lease incentive payments where applicable. These costs are payable as incurred to a third party or to Chatime.
It's important to note that these estimates do not cover extraordinary costs arising from extensive redesign, landlord works, permitting, variances, environmental issues, or legal obstacles. These potential additional costs could significantly increase the overall investment required to prepare the Chatime store for opening.
Prospective franchisees should carefully evaluate potential locations and consider these factors when budgeting for leasehold improvements. Obtaining detailed quotes from contractors and consultants is advisable to develop a more accurate estimate. Understanding the scope of work required and any potential challenges associated with the site is crucial for managing costs effectively.