Is a Chatime franchisee required to use approved suppliers for real estate and construction management services?

According to Chatime's 2025 Franchise Disclosure Document, franchisees must use approved suppliers for real estate and construction management services. This requirement extends to construction due diligence, architectural, engineering and design services, construction permit acquisition and management services, and construction site visits.

This means a prospective Chatime franchisee does not have the freedom to select their own providers for these critical services. Instead, they must choose from a list of suppliers pre-approved by Chatime. This requirement aims to ensure consistency and quality across all Chatime locations, as the franchisor has vetted these suppliers to meet their standards.

While using approved suppliers can streamline the process and potentially reduce risks associated with unproven vendors, it also limits the franchisee's ability to negotiate pricing or choose suppliers with whom they may have pre-existing relationships. All construction costs are the responsibility of the franchisee. Therefore, it is important for a prospective franchisee to understand the approved supplier list, compare pricing and services, and factor these costs into their overall investment analysis.