What must a Chatime franchisee do if they request to relocate their store?
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 cannot relocate their Chatime store without first obtaining written permission from Chatime. To request relocation, the franchisee must seek prior written approval for the new site and meet Chatime's then-current criteria for relocation. The approval process is substantially the same as that used for approving a new location.
Furthermore, the franchisee must fulfill all obligations to Chatime and sign the then-current form of the Franchise Agreement, which includes all then-current ongoing fees. The term of the new Franchise Agreement will be equal to the remaining term of the original Franchise Agreement or to align with the new lease term, provided it is no greater than 10 years.
If the new lease term is longer than the remaining term of the original agreement, the franchisee must pay a pro rata fee of the initial Franchise Fee. The new Franchise Agreement may contain materially different terms and conditions than the original Franchise Agreement. There is no additional Initial Franchise Fee paid to Chatime for relocation unless Chatime grants a term greater than the term remaining on the Franchise Agreement for the previous location. This means that franchisees need to be prepared to potentially renegotiate their franchise terms and pay additional fees if they want to move their store to a new location and extend their franchise term.