What is the estimated total initial investment for a Chatime multi-unit development agreement for three to ten locations?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
fice space of one of your Chatime Stores.
- The total initial investment for a multi-unit development agreement for three to ten locations is $373,100 to $699,900.
The low-end figure of $373,100 is the low-end estimated initial investment for a multi-unit development agreement for three locations. This figure includes the Multi-Unit Development Fee for three locations, namely $134,900, plus the low-end estimated initial investment for the first location, namely $238,200 (calculated based on the expenses listed in Item 7 not including the Initial Franchise Fee which is not included because the Multi-Unit Development Fee serves as full credit against the initial franchise fees for each location including the first location).
The high-end figure of $699,900 is the high-end estimated initial investment for a multi-unit development agreement for ten locations. This figure includes the Multi-Unit Development Fee for ten locations, namely $274,900 plus the high-end estimated initial investment for the first location, namely $425,000 (calculated based on the expenses listed in Item 7 not including the Initial Franchise Fee which is not included because the Multi-Unit Development Fee serves as full credit against the initial franchise fees for ea
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 total initial investment for a multi-unit development agreement covering three to ten locations ranges from $373,100 to $699,900. This investment covers the multi-unit development fee and the estimated initial investment to open the first Chatime store.
The multi-unit development fee itself varies depending on the number of locations. For three locations, the fee is $134,900. For development agreements covering more than three locations, the fee starts at $134,900 and increases by $20,000 for each additional location. The maximum multi-unit development fee in this range, for ten locations, is $274,900. This fee is non-refundable and is due at the signing of the multi-unit development agreement. However, it serves as a full credit against the initial franchise fee for each individual location, including the first.
The total initial investment also includes the cost to open the initial Chatime store, estimated between $238,200 and $425,000. The low-end total investment of $373,100 represents the $134,900 multi-unit development fee for three locations plus the $238,200 low-end estimate for opening the first store. The high-end total of $699,900 comprises the $274,900 multi-unit development fee for ten locations plus the $425,000 high-end estimate for the first store.
Prospective franchisees should note that these figures are estimates and actual costs may vary. The FDD advises that the multi-unit development business can initially be operated from home and later from the office space of one of the Chatime stores, which could affect the need for separate office space and associated costs. It is important for potential multi-unit developers to carefully review all components of the estimated initial investment and to discuss any questions or concerns with Chatime.