What is the Chatime franchisee's obligation regarding renovations and refurbishments if the outlet has been in operation for 5 or more years to renew the franchise agreement?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) Franchisee ensures that the Outlet which has been in operations for 5 or more years is renovated and refurbished (including replacing or upgrading any plant, equipment, fixtures, fittings and signs as Franchisor may reasonably require) in order to bring the Outlet up to the then-current standards and specifications of Franchisor for all new Outlets and to comply with any Legal Requirements.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a franchisee seeking to renew their franchise agreement for an outlet that has been in operation for five or more years has specific obligations regarding renovations and refurbishments. To successfully renew the franchise agreement, the franchisee must ensure that the outlet is renovated and refurbished to meet Chatime's current standards for new outlets.
This includes replacing or upgrading any plant, equipment, fixtures, fittings, and signs as reasonably required by Chatime. The purpose of this requirement is to bring the existing outlet up to the then-current standards and specifications that Chatime has established for all new outlets. This ensures consistency and quality across all Chatime locations, maintaining brand standards and customer experience.
Furthermore, the renovations and refurbishments must also comply with any Legal Requirements. Meeting these renovation and refurbishment standards is a condition for the franchise agreement renewal. If the franchisee fails to complete the required renovations and refurbishments to Chatime's satisfaction, the renewal may be denied, and the franchise agreement will expire at the end of its initial term.