What happens if Chatime does not approve a proposed site?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Subject to a reasonable belief by Franchisor that Developer will meet all requirements under clause 4.4, Franchisor must provide its approval or non-approval to the proposed Site within 30 days after receiving all the information required by Franchisor. When Franchisor does not approve a proposed Site, it must provide to Developer a written notice:
- (a) Specifying that approval is withheld; and
- (b) Setting out why approval is withheld. If any additional information is requested by Franchisor in respect of a proposed Site, the 30 days will begin upon the date of receipt of any such additional information.
- (3) Franchisor may approve a proposed Site for a new Outlet being opened subject to reasonable conditions including, without limitation, renovating and remodeling the interior and exterior of such a new Outlet according to Franchisor's latest design guidelines, as determined in its sole discretion.
- (4) Promptly after receipt by Developer of written approval from Franchisor to establish a new Outlet at the proposed Site, Developer must itself procure an Occupancy Right in relation to the approved Site.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a developer must obtain written approval from Chatime before establishing an outlet. To get approval, the developer needs to follow the process outlined in the operations manual. Chatime has 30 days to provide approval or non-approval after receiving all required information from the developer. If Chatime requests additional information about the proposed site, the 30-day period begins when they receive that additional information.
If Chatime does not approve a proposed site, they must provide the developer with a written notice specifying that approval is withheld and explaining the reasons for withholding approval. This ensures the developer understands why the site was rejected and can address any concerns in future proposals.
Chatime may approve a site with reasonable conditions, such as requiring renovations or remodeling to meet their latest design guidelines. Once the developer receives written approval, they must promptly secure an occupancy right for the approved site. This process ensures that all Chatime locations meet the brand's standards and operational requirements.