Where can I find the amount of the 'New Outlet Fee' for a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (41) New Outlet Fee means the fee payable by Franchisee to Franchisor for each new Outlet opened in the Territory in the amount specified in Section 5 of Schedule 1.
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 New Outlet Fee is detailed in Section 5 of Schedule 1. The New Outlet Fee is a payment that franchisees must make to Chatime upon signing the Franchise Agreement for each new outlet they open in their designated territory. Schedule 1 is not included in the provided excerpts.
Prospective franchisees should carefully review Section 5 of Schedule 1 within the Franchise Agreement to understand the exact amount of the New Outlet Fee and any related payment terms. This fee is a critical initial investment and should be factored into the overall cost analysis when considering a Chatime franchise.
Understanding the New Outlet Fee is essential for budgeting and financial planning. Franchisees should also inquire about any potential financing options or payment plans that Chatime may offer to help manage this initial cost. It is also important to understand if the New Outlet Fee is uniform or varies based on location or other factors.