What form of agreement must a Chatime franchisee sign upon relocation?
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, a franchisee must sign the then-current form of the Franchise Agreement if they request to relocate their Chatime store. This is contingent on receiving prior written approval for the new site and meeting Chatime's current relocation criteria.
The agreement will include all then-current ongoing fees, and the term will be equal to the remaining term on the original Franchise Agreement or aligned with the new lease term, provided it's no greater than 10 years. A pro rata fee of the initial Franchise Fee will be applied.
It is important to note that the then-current Franchise Agreement may have materially different terms and conditions than the franchisee's original agreement. Unless the term granted is longer than what remained on the original agreement, there is no additional Initial Franchise Fee required for relocation.