Does a Chatime franchisee have the right to relocate their store without permission from the franchisor?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
You do not have the right to relocate your Chatime Store without our permission. If you request relocation, you must obtain our prior written approval for the site and meet our then-current criteria for relocation. Our approval process is substantially the same process we use in approving a new location. You must comply with all your obligations to us and sign our then-current form of Franchise Agreement with all then-current ongoing fees, for a term equal to the term remaining on your Franchise Agreement for the previous location or to align with the new lease term being no
greater than 10 years on the new location, at a pro rata fee of the initial Franchise Fee entered into. The then-current Franchise Agreement may contain materially different terms and conditions than your original Franchise Agreement. There is no additional Initial Franchise Fee paid to us for relocation unless we grant you a term greater than the term remaining on the Franchise Agreement for the previous location.
Source: Item 12 — Territory (FDD pages 35–38)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a franchisee does not have the right to relocate their store without obtaining prior written permission from Chatime. If a franchisee wishes to relocate, they must seek approval for the new site, and it must meet Chatime's then-current criteria for relocation. The approval process is similar to that of approving a new location.
Furthermore, the franchisee must fulfill all obligations to Chatime and sign the then-current form of the Franchise Agreement, which may include updated ongoing fees. The term of the new Franchise Agreement will be equal to the remaining term of the original agreement or aligned with the new lease term, provided it is no greater than 10 years, with a pro rata fee of the initial Franchise Fee.
It is important to note that the then-current Franchise Agreement may contain materially different terms and conditions than the franchisee's original agreement. While there is no additional Initial Franchise Fee for relocation if the term does not exceed the remaining term of the original agreement, Chatime may require one if a longer term is granted for the new location. This stipulation ensures Chatime maintains control over store locations and can update agreements to reflect current business practices, which is a fairly standard practice in franchising.