What must a Chatime franchisee do to obtain approval for a given site?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) Franchisee must not establish, or permit any others to establish, an Outlet without first obtaining the written approval of Franchisor. To obtain approval for a given site, Franchisee must comply with the process set out in the Operations Manual.
Subject to a reasonable belief by Franchisor that Franchisee will meet all requirements under clause 4.8, Franchisor must provide its approval or non-approval to the proposed Site within 30 days after receiving all the information required by Franchisor. Where Franchisor does not approve a proposed Site, it must provide to Franchisee a written notice:
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a franchisee must obtain written approval from Chatime before establishing an outlet. To get approval for a specific site, the franchisee must follow the process detailed in Chatime's Operations Manual.
Chatime is expected to provide its decision, either approving or rejecting the proposed site, within 30 days of receiving all required information from the franchisee, assuming Chatime believes the franchisee will meet all requirements. If Chatime does not approve the site, it must provide a written notice explaining the reasons for the disapproval.
Chatime may also approve a site subject to certain conditions, such as renovations or remodeling to meet Chatime's latest design guidelines. After receiving written approval, the franchisee must then secure an Occupancy Right for the approved site. This process ensures that all Chatime locations meet the brand's standards and comply with its operational requirements.
For developers, any relocation of an existing Chatime outlet beyond a 2-kilometer radius from the original site, and after more than 90 days of closing the outlet at the original location, is considered the opening of a new outlet. This is subject to all the standard provisions and requires payment of a New Outlet Fee to Chatime.