Where can I find the amount of the 'Development Fee' for a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
5.1 Development Fee
Developer must pay the Development Fee to Franchisor in accordance with the payment schedule set out in Section 6 of Schedule 1. You must pay Development Fee in one lump sum when you sign this Multi-Unit Development Agreement. The Development Fee replaces, and serves as a full credit against, the Initial Franchise Fee for each Outlet you agree to open (including but not limited to your first Outlet). The Development fee is fully earned by us upon our receipt, and it is not refundable any circumstances, regardless of how many Outlets you actually open.
5.2 Renewal Development Fee
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the specific amount of the Development Fee can be found in Section 6 of Schedule 1. The Development Fee is a one-time, non-refundable fee that a developer pays to Chatime for the rights to develop multiple franchise locations. This fee serves as a credit towards the Initial Franchise Fee for each outlet the developer commits to opening.
The FDD states that the Development Fee must be paid in a single lump sum upon signing the Multi-Unit Development Agreement. Chatime earns the fee in full upon receipt, and it is non-refundable under any circumstances, regardless of the number of outlets the developer ultimately opens.
Prospective developers should carefully review Section 6 of Schedule 1 to understand the exact amount of the Development Fee required for their specific development agreement. Understanding the payment terms and non-refundable nature of this fee is crucial before entering into a Multi-Unit Development Agreement with Chatime.