What is a Chatime developer required to do promptly after receiving written approval from Chatime to establish a new Outlet at the proposed Site?

According to Chatime's 2025 Franchise Disclosure Document, a developer who receives written approval from Chatime to establish a new Outlet at a proposed site must promptly secure an Occupancy Right for that approved site. This means the developer needs to obtain the legal right to occupy and use the premises for their Chatime business.

Securing an Occupancy Right typically involves either leasing or purchasing the property. If leasing, the developer will enter into a lease agreement with the landlord. If purchasing, the developer will acquire ownership of the property. This step is crucial as it grants the developer the legal authority to operate their Chatime outlet at the approved location.

The requirement to promptly secure an Occupancy Right underscores the importance of acting swiftly once site approval is granted. Delays in securing the property could potentially lead to losing the site to another interested party or could postpone the opening of the Chatime outlet, impacting the developer's business plan and revenue projections. This also highlights the need for developers to have their financing and legal arrangements in place to facilitate a quick and efficient acquisition of the Occupancy Right.