Does the Chatime Franchise Disclosure Document include Exhibit C, which is the Multi-Unit Development Agreement?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT C to the FRANCHISE DISCLOSURE DOCUMENT MULTI-UNIT DEVELOPMENT AGREEMENT
Chatime Multi-Unit Development Agreement
Parties:
Chatime Franchise, LLC (Franchisor)
Developer specified in Schedule 1 (Developer)
Guarantor specified in Schedule 1 (Guarantor)
Contents
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, Exhibit C is indeed the Multi-Unit Development Agreement. This agreement outlines the terms and conditions for a developer who wishes to open multiple Chatime locations, rather than just a single franchise. The document lists Chatime Franchise, LLC as the franchisor and refers to the developer and guarantor as specified in Schedule 1.
The Multi-Unit Development Agreement is a critical document for those looking to expand the Chatime brand in a specific region. It will contain details about development schedules, territory rights, and obligations for opening multiple units. Prospective developers should carefully review this exhibit to understand the full scope of their commitment and the franchisor's expectations.
Several state-specific amendments to the Multi-Unit Development Agreement are also included in the FDD. For example, amendments for Illinois, Maryland, and North Dakota modify certain clauses to comply with state franchise laws. These amendments often address issues such as dispute resolution, waivers of legal rights, and non-compete agreements, ensuring that the franchise agreement adheres to local regulations. Franchisees should pay close attention to any state-specific amendments that apply to their territory.