Is a Chatime franchisee allowed to begin construction on a site without prior approval from Chatime?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
ause 4.9 of the Franchise Agreement).
4. Construction
We will provide you with standard, generic plans and specifications for the improvements, furnishings, fixtures, and decor of your Chatime Store. You will then have specific plans and specifications for construction or conversion of the space for your Chatime Store prepared by an approved licensed architect at your expense. These plans and specifications must be approved by us in writing before you begin construction. We must approve any changes made during construction in writing. (Clause 4.11 of the Franchise Agreement).
You must use our approved suppliers for real estate and construction management services, construction due diligence, architectural, engineering and design services, construction permit acquisition and management services, and construction site visits. All construction will be at your expense. (Clause 4.11 of the Franchise Agreement).
You will ensure that your Chatime Store is accessible to and usable by persons with disabilities and meets the Standards for Accessible Design for new construction or any more stringent accessibility standard under federal, state, or local law prior to opening your Chatime Store. (Clause 4.11 of the Franchise Agreement).
The typical length of time between the earlier of the signing of a Franchise Agreement or the first payment of consideration for a Chatime Store and the opening of the Chatime Store is 6 to 12 months. Factors that may affect this time period include, without limitation, your ability to obtain a lease, financing or building permits, zoning and local ordinances, weather conditions, shortages, Covid restrictions, or the delayed installation of equipment, fixtures, and signage.
5.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 27–35)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a franchisee is not allowed to begin construction on a site without prior approval from Chatime. Chatime will provide standard, generic plans and specifications for the improvements, furnishings, fixtures, and decor of the Chatime store. The franchisee will then have specific plans and specifications prepared by an approved licensed architect at their own expense. These plans and specifications must receive written approval from Chatime before construction can commence, and any changes made during construction also require written approval.
This requirement ensures that all Chatime stores adhere to the brand's standards and specifications, maintaining a consistent image and customer experience. It also allows Chatime to oversee the construction process and ensure compliance with their requirements. The franchisee is responsible for using Chatime's approved suppliers for real estate and construction management services, construction due diligence, architectural, engineering and design services, construction permit acquisition and management services, and construction site visits. All construction costs are borne by the franchisee.
This stipulation is fairly standard in the franchise industry, as franchisors typically want to maintain tight control over the build-out and appearance of their locations. For a prospective Chatime franchisee, this means they must factor in the time and cost associated with obtaining Chatime's approvals at each stage of the site selection and construction process. Failure to obtain prior written approval before starting construction could result in penalties, delays, or even termination of the franchise agreement.