If I sign a Multi-Unit Development Agreement with Chatime, what must I do regarding locations?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
If you sign a Multi-Unit Development Agreement, you must find a suitable location for each additional location in time to meet the development schedule. We will approve each additional location under the Multi-Unit Development Agreement using our then-current site criteria. We will not reimburse you for any costs you incur for any location you submit to us for review and approval. (Clauses 4.7, 4.8 and 4.9 of the Franchise Agreement).
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 you sign a Multi-Unit Development Agreement, you are responsible for finding suitable locations for each additional Chatime store, ensuring that you meet the development schedule outlined in your agreement. Chatime will provide its site selection criteria and designate a geographic area where you must select the site. You are responsible for submitting a proposal for each site location to Chatime for their review and approval. Chatime does not select the site for you.
Chatime will use its then-current site criteria to approve each additional location under the Multi-Unit Development Agreement. You will not be reimbursed for any costs incurred during the site selection and approval process. Chatime has 30 days to approve or disapprove a proposed site from the date of your submission. If Chatime needs additional information, the 30-day period restarts upon receipt of the new information. If Chatime disapproves, they will provide a written notice specifying the reasons for the disapproval. If you and Chatime cannot agree on a site, Chatime may terminate your franchise agreement, and you will forfeit your initial fee.
Chatime may approve or disapprove a proposed site at their discretion, considering factors such as location, occupancy costs, proximity to major retail activity, traffic volume and speed, population density, competition, potential encroachment on other Chatime stores, site configuration, parking, accessibility, visibility, and signage. You cannot begin construction on a site without Chatime's prior written approval. This process ensures that all locations meet Chatime's standards and have the best chance of success, but it also places the financial risk of site selection on you, the franchisee.