When must a Chatime Developer notify the Franchisor of their intention to exercise the option to renew the development agreement?

According to Chatime's 2025 Franchise Disclosure Document, a Developer who wishes to exercise their option for a new term must provide written notification to Chatime of their intention within a specific timeframe. This notification must be made not more than 12 months and not less than 8 months before the end of the initial term of the development agreement. This timeframe is crucial for the Developer to adhere to if they wish to continue their development rights with Chatime.

In addition to providing timely notice, the Chatime Developer must also submit a proposed development schedule for the new term, referred to as the Revised Development Schedule, at the time of notifying Chatime of their intent to renew. Chatime then has a 3-month period to review and either accept the proposed schedule or negotiate a mutually agreeable schedule with the Developer. This negotiation process emphasizes the importance of planning and communication between the Developer and Chatime to ensure alignment on future development plans.

It's important to note that the option to renew is contingent upon several conditions. These include the Developer's substantial compliance with all material provisions of the existing agreement throughout the initial term and the absence of any unresolved breaches of the agreement or related collateral agreements at the time of notification and at the end of the initial term. Meeting these conditions is essential for the Developer to be eligible for renewal and continue their partnership with Chatime.