What fees are associated with relocating a Chatime store?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
You do not have the right to relocate your Chatime Store without our permission. If you request relocation, you must obtain our prior written approval for the site and meet our then-current criteria for relocation. Our approval process is substantially the same process we use in approving a new location. You must comply with all your obligations to us and sign our then-current form of Franchise Agreement with all then-current ongoing fees, for a term equal to the term remaining on your Franchise Agreement for the previous location or to align with the new lease term being no
greater than 10 years on the new location, at a pro rata fee of the initial Franchise Fee entered into. The then-current Franchise Agreement may contain materially different terms and conditions than your original Franchise Agreement. There is no additional Initial Franchise Fee paid to us for relocation unless we grant you a term greater than the term remaining on the Franchise Agreement for the previous location.
Source: Item 12 — Territory (FDD pages 35–38)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, franchisees need permission to relocate their store. Chatime's approval process for relocation is similar to that of approving a new location. A franchisee must also comply with all obligations to Chatime and sign the then-current form of the Franchise Agreement, which includes all then-current ongoing fees.
If a franchisee's new lease term or the term they are requesting is longer than what remains on their original Franchise Agreement, they may have to pay a pro rata fee of the initial Franchise Fee. This fee is applied if Chatime grants a term greater than the term remaining on the Franchise Agreement for the previous location.
It's important to note that the then-current Franchise Agreement may have materially different terms and conditions than the franchisee's original agreement. This means that relocating could subject a franchisee to new or altered obligations and fees beyond just the relocation process itself. Prospective franchisees should carefully consider these potential changes and discuss them with Chatime before deciding to relocate.