What are some of the factors that generally affect Chatime's approval or disapproval of a proposed site?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
We may approve or disapprove a proposed site in our discretion. Factors affecting our approval generally include location, occupancy costs, proximity to major retail activity, traffic volume and speed, density of nearby population (resident or daytime), competition and potential for encroachment on other Chatime Stores, site configuration, parking, accessibility, visibility, signage permitted by the landlord and local governmental authorities, and other factors. (Clauses 4.7, 4.8 and 4.9 of the Franchise Agreement). You will not begin any construction on a site without our prior approval. (Clause 4.11 of the Franchise Agreement).
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 27–35)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the franchisor may approve or disapprove a proposed site at their discretion. Several factors can influence this decision. These factors include the site's location, occupancy costs, and proximity to major retail activity. The franchisor will also consider the traffic volume and speed in the area, as well as the density of the nearby population, whether resident or daytime.
Competition and the potential for encroachment on other Chatime stores are also important considerations. The physical characteristics of the site, such as its configuration, parking availability, accessibility, and visibility, play a role in the approval process. The signage permitted by the landlord and local governmental authorities is another factor.
In summary, Chatime assesses a range of criteria related to location, cost, market conditions, site characteristics, and regulatory factors when deciding whether to approve a proposed site. Franchisees should carefully consider these factors when selecting a potential location to increase the likelihood of approval and the future success of their Chatime store.