What is the estimated range for licenses, permits, and utility deposits for a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
| Estimated Amount | Method of | When | Payable to | |
|---|---|---|---|---|
| Type of Expenditure | ||||
| Range | Payment | Payable | Whom | |
| Initial Franchise Fee(1) | $54,900 | Lump sum | Upon signing Franchise Agreement | Us |
| Initial Training, Opening | $5,000 | As arranged | As incurred | Us |
| Support and | ||||
| Related Personnel Cost(2) | ||||
| Rent(3) | $6,000 to $33,000 | As arranged | As specified in lease | Landlord |
| Lease Security Deposit (3) | $4,000 to $22,000 | As arranged | As specified in lease | Landlord |
| Storage Space Deposit(3) | $0 to $1500 | As arranged | As specified in lease | Third party |
| Leasehold Improvements (4) | $135,000 to $226,000 | As arranged | As incurred | Third party or Us |
| Equipment (5) | $33,500 to $46000 | As arranged | As incurred | Third party |
| External Signage | $4,200 to $9,500 | As arranged | As incurred | Third party |
| Estimated Amount | Method of | When | Payable to | |
| Type of Expenditure | Range | Payment | Payable | Whom |
| Opening Inventory and | $10,000 to $16,000 | As arranged | As incurred | Our affiliates |
| Supplies(6) | ||||
| Grand opening marketing(7) | $10,000 | As arranged | As incurred | Third parties |
| Licenses, Permits, and | $3,500 to $5,500 | As arranged | Lump sum | Third party |
| Utility Deposits |
Source: Item 7 — Estimated Initial Investment (FDD pages 17–22)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the estimated initial investment for licenses, permits, and utility deposits ranges from $3,500 to $5,500. These costs cover business licenses, permits, and utility deposits that may be required by local, state, and other governmental authorities, or utility providers. This is a one-time, lump sum payment made to a third party.
These fees are part of the initial costs required to start a Chatime franchise. Franchisees need to budget for these expenses when planning their initial investment. It is important to note that these are estimates, and the actual costs may vary depending on the specific location and requirements of the local authorities and utility companies.
Prospective Chatime franchisees should contact local authorities and utility providers to verify the exact costs for licenses, permits, and utility deposits in their area. This will help them create a more accurate budget and avoid unexpected expenses during the initial setup phase. Understanding these costs is crucial for the financial planning of a new Chatime franchise.