What fee must a Chatime Developer pay to exercise the option for a new term?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
5.2 Renewal Development Fee
Where Developer exercises its option to enter into a new development business agreement for the New Term in accordance with clause 2.7, Developer must pay to Franchisor the Renewal Development Fee in accordance with the then-current form of Multi-Unit Development Agreement.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a Developer who chooses to exercise their option to enter into a new development business agreement for a new term must pay a Renewal Development Fee. The specific amount of this fee will be determined by the then-current form of the Multi-Unit Development Agreement.
This means that the cost to renew a development agreement with Chatime is not fixed and can change over time. The fee applicable at the time of renewal will be based on the terms outlined in the Multi-Unit Development Agreement that is current at that time.
As a prospective Chatime developer, it is important to understand that the Renewal Development Fee is a condition for extending the development agreement. Developers should carefully review the terms of the then-current Multi-Unit Development Agreement when considering whether to exercise their option for a new term to fully understand the financial commitment involved.