Is a Chatime franchisee required to provide all required information about a proposed site to Chatime?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
ior approval. (Clause 4.11 of the Franchise Agreement).
You will provide us with all required information about a site you propose. You will provide a copy of the site lease for our record. We do not pay "finders' fees" for sites. We do not generally own or take a prime lease on real estate and then lease it to our franchisees. We are not required to provide you with assistance in negotiating the purchase or lease of a site, but we may do so in some cases by providing certain supporting data on the site. (Clauses 4.8, 4.9, and 5.4 of the Franchise Agreement).
We will review your lease to ensure that you have obtained a lease addendum, in substantially the form attached to the Franchise Agreement, which must give us the option but not the obligation to assume the lease if you default on the lease, and which must require the landlord to give written notice to us of any defaults by you. (Clause 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 required to provide all necessary information about a proposed site to Chatime. The franchisee must also provide a copy of the site lease for Chatime's records. Chatime does not pay finders' fees for sites and does not typically own or take a prime lease on real estate to then lease to its franchisees.
Chatime will provide franchisees with site selection criteria and designate a geographic area for site selection. The franchisee is responsible for finding a suitable location, which Chatime must approve. Chatime will review the site proposal within 30 days of submission. If Chatime requests additional information, the 30-day review period restarts upon receipt of the new information. If Chatime disapproves of a site, they will provide a written notice stating the reasons for disapproval.
Chatime may approve or disapprove a proposed site at its discretion, considering factors such as location, occupancy costs, proximity to retail activity, traffic volume, population density, competition, site configuration, parking, accessibility, visibility, and signage. The franchisee cannot begin construction without Chatime's prior approval. If Chatime and the franchisee cannot agree on a site, Chatime may terminate the franchise agreement, and the initial fee will be forfeited.