What information must Chatime provide to the developer if it withholds approval for 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.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, if Chatime withholds approval for a proposed site, it must provide the developer with a written notice specifying that approval is withheld and setting out the reasons for withholding approval. This ensures the developer understands why the site was not approved and what factors contributed to the decision.
This requirement is important for transparency and allows the developer to address any concerns Chatime has about the proposed site. It also enables the developer to make informed decisions about future site selections, potentially avoiding similar issues. The 2025 FDD also states that if Chatime requests additional information regarding a proposed site, the 30-day period for approval or non-approval begins upon receipt of that additional information.
This process is fairly standard in franchising, as franchisors typically have specific criteria for site selection to maintain brand consistency and ensure the likelihood of success. By providing clear reasons for disapproval, Chatime supports its developers in finding suitable locations that align with the brand's strategic goals.