Can a Chatime franchisee lease, license, or franchise their business without the franchisor's consent?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must not lease, license, franchise, or part with possession of the Franchised Business or the Franchise without first obtaining Franchisor's written consent.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a franchisee cannot lease, license, franchise, or part with possession of their Chatime business without obtaining prior written consent from the franchisor. This restriction is explicitly stated in Section 13.6, emphasizing the franchisor's control over who operates a Chatime franchise.
This requirement protects Chatime's brand integrity and ensures that any potential operator meets the franchisor's standards. The franchisor retains the right to approve or deny any transfer of the franchise, maintaining consistency and quality across all locations. This is a common practice in franchising, as franchisors need to ensure that new operators are capable of upholding brand standards and operational procedures.
Furthermore, the FDD specifies that any attempted transfer without the franchisor's written consent will be considered null and void, constituting a material breach of the franchise agreement. This underscores the importance of adhering to the franchisor's approval process when considering any form of transfer or change in control of the Chatime franchise. Prospective franchisees should be aware of this restriction and factor it into their long-term business plans.