What must a Chatime developer do to obtain approval for a given site?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Developer must not establish an Outlet without first obtaining the written approval of Franchisor. To obtain approval for a given site, Developer must comply with the process set out in the Operations Manual.
- (2) Subject to a reasonable belief by Franchisor that Developer will meet all requirements under clause 4.4, Franchisor must provide its approval or non-approval to the proposed Site within 30 days after receiving all the information required by Franchisor. When Franchisor does not approve a proposed Site, it must provide to Developer a written notice:
- (a) Specifying that approval is withheld; and
- (b) Setting out why approval is withheld. If any additional information is requested by Franchisor in respect of a proposed Site, the 30 days will begin upon the date of receipt of any such additional information.
- (3) Franchisor may approve a proposed Site for a new Outlet being opened subject to reasonable conditions including, without limitation, renovating and remodeling the interior and exterior of such a new Outlet according to Franchisor's latest design guidelines, as determined in its sole discretion.
- (4) Promptly after receipt by Developer of written approval from Franchisor to establish a new Outlet at the proposed Site, Developer must itself procure an Occupancy Right in relation to the approved Site.
- (5) Any relocation of an Outlet beyond a 2-km radius of the existing site and beyond 90 days of closing the Outlet at the original location is deemed opening a New Outlet and subject to all applicable provisions under this Agreement, and Franchisor shall be entitled to the New Outlet Fee.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a developer must obtain written approval from Chatime before establishing an outlet. To get approval for a specific site, the developer needs to follow the process outlined in Chatime's Operations Manual.
Chatime is required to respond within 30 days of receiving all necessary information from the developer regarding the proposed site. If Chatime does not approve the site, they must provide a written notice explaining why the approval was withheld. Chatime may also request additional information, which would restart the 30-day review period upon receipt of the new details.
Chatime has the right to approve a site with reasonable conditions, such as requiring the developer to renovate or remodel the outlet according to Chatime's latest design guidelines. After receiving written approval, the developer must then secure an Occupancy Right for the approved site.
It is also important to note that any relocation of an existing Chatime outlet beyond a 2-km radius of the original site and after 90 days of closing the original outlet is considered opening a new outlet. This would subject the developer to all applicable provisions of the agreement, including a new outlet fee.