What must a Chatime franchisee do after receiving written approval from Chatime to establish the Outlet at the proposed Site?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Promptly after receipt by Franchisee of written approval from Franchisor to establish the Outlet at the proposed Site, or after the expiration of the 30 day period specified in clause 4.8(2), Franchisee must itself or must ensure that the relevant Franchisee procures an Occupancy Right in relation to the approved Premises. If the Occupancy Right is procured by lease, license or other approved occupancy right, Franchisee must do so in accordance with clause 4.9. If the Occupancy Right is procured by purchase, Franchisee must return to Franchisor the lease evidencing Franchisee's right to occupy the approved Site 15 days after the purchase has been affected. Franchisee must then ensure that construction and operation of the Outlet is undertaken pursuant to the terms of this Agreement.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, after receiving written approval from Chatime to establish an Outlet at the proposed site, a franchisee must procure an Occupancy Right for the approved premises. This means the franchisee must secure the legal right to occupy and use the location for their Chatime business.
If the Occupancy Right is obtained through a lease, license, or other approved method, the franchisee must ensure it aligns with clause 4.9 of the franchise agreement. If the Occupancy Right is obtained through a purchase, the franchisee must provide Chatime with the lease evidencing the franchisee's right to occupy the approved site within 15 days after the purchase.
Following the procurement of the Occupancy Right, the franchisee must ensure that the construction and operation of the Outlet are conducted in accordance with the terms of the Franchise Agreement. This includes adhering to Chatime's System Standards for construction and operational guidelines to maintain brand consistency and quality.