What is included in the low-end estimated initial investment for a Chatime multi-unit development agreement for three locations?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
e space of one of your Chatime Stores.
- The total initial investment for a multi-unit development agreement for three to ten locations is $373,100 to $699,900.
The low-end figure of $373,100 is the low-end estimated initial investment for a multi-unit development agreement for three locations. This figure includes the Multi-Unit Development Fee for three locations, namely $134,900, plus the low-end estimated initial investment for the first location, namely $238,200 (calculated based on the expenses listed in Item 7 not including the Initial Franchise Fee which is not included because the Multi-Unit Development Fee serves as full credit against the initial franchise fees for ea
Source: Item 7 — Estimated Initial Investment (FDD pages 17–22)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the low-end estimated initial investment for a multi-unit development agreement for three locations is $373,100. This figure encompasses two primary components: the Multi-Unit Development Fee for three locations, which amounts to $134,900, and the low-end estimated initial investment for the first Chatime location, totaling $238,200.
The Multi-Unit Development Fee grants the franchisee the right to develop multiple Chatime franchise units within a specific geographic area, adhering to an agreed-upon development schedule. This fee serves as a full credit against the initial franchise fees for each location, including the first, meaning the franchisee won't have to pay a separate initial franchise fee for each individual unit.
The $238,200 allocated for the first location covers the expenses typically associated with opening a single Chatime store, as detailed in Item 7 of the FDD. However, it's important to note that this figure excludes the initial franchise fee, as that is already covered by the Multi-Unit Development Fee. This structure is designed to incentivize and support franchisees looking to expand Chatime's presence through multiple locations.