If Chatime does not approve a proposed site, what information will Chatime provide in a written notice?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
The time limit for us to approve or disapprove a proposed site is within 30 days of your submission. If we do not approve a proposed site, we will provide a written notice to you (i) specifying that approval is withheld, and (ii) setting out the reasons approval is withheld. If any additional information is requested by us for a proposed site, the 30 day-period will restart on the date of our receipt of any such additional information. (Clauses 4.7, 4.8 and 4.9 of the Franchise Agreement). If we cannot agree on a site, we may terminate your franchise agreement and your initial fee will be forfeited.
We may approve or disapprove a proposed site in our discretion. Factors affecting our approval generally include location, occupancy costs, proximity to major retail activity, traffic volume and speed, density of nearby population (resident or daytime), competition and potential for encroachment on other Chatime Stores, site configuration, parking, accessibility, visibility, signage permitted by the landlord and local governmental authorities, and other factors. (Clauses 4.7, 4.8 and 4.9 of the Franchise Agreement). You will not begin any construction on a site without our prior approval. (Clause 4.11 of the Franchise Agreement).
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, if Chatime does not approve a proposed site, they will provide the franchisee with a written notice specifying that approval is withheld and setting out the reasons why the approval was withheld. Chatime has 30 days to approve or disapprove a proposed site after the franchisee submits the site proposal. If Chatime requests additional information, the 30-day period restarts when Chatime receives the additional information.
Site approval is at Chatime's discretion, and factors affecting approval include location, occupancy costs, proximity to major retail activity, traffic volume and speed, density of nearby population, competition, potential encroachment on other Chatime stores, site configuration, parking, accessibility, visibility, and signage permitted by the landlord and local governmental authorities.
If Chatime and the franchisee cannot agree on a site, Chatime may terminate the franchise agreement, and the initial franchise fee will be forfeited. This highlights the importance of carefully researching and selecting a site that meets Chatime's criteria and communicating effectively with Chatime during the site selection process.