What is the initial franchise fee for a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
| Estimated Amount | Method of | When | Payable to | |
|---|---|---|---|---|
| Type of Expenditure | ||||
| Range | Payment | Payable | Whom | |
| Initial Franchise Fee(1) | $54,900 | Lump sum | Upon signing Franchise Agreement | Us |
| Initial Training, Opening | $5,000 | As arranged | As incurred | Us |
| Support and | ||||
| Related Personnel Cost(2) |
- (1) Initial Franchise Fee and Other Fees. You will pay us a non-refundable $54,900 Initial Franchise Fee. All of the fees paid to us are non-refundable except that, if you give us notice of termination within seven days after execution of your Franchise Agreement, we will return the Initial Franchise Fee within 14 days after receiving your notice of termination. Fees paid to vendors or other suppliers may be refundable depending on the vendors and suppliers.
- If you sign a multi-unit development agreement, you will pay us, when you sign that agreement, a non-refundable fee for the right to development multiple franchise units. You agree to open and operate the agreed number of Chatime Stores within a specific geographic area according to an agreed development schedule. The amount of the multi-unit development fee will depend on the number of locations to be opened. For each location, you will have to sign a separate individual unit franchise agreement in our then-current form of franchise agreement, which may be different than our current form of franchise agreement. The multi-unit development fee will serve as a full credit against the initial franchise fee for each location (including the first location), so that you will not be required to pay an initial franchise fee at the time you sign each Franchise Agreement for each location.
Source: Item 7 — Estimated Initial Investment (FDD pages 17–22)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the initial franchise fee is $54,900. This fee is non-refundable, but there is an exception: if the franchisee terminates the Franchise Agreement within seven days of signing, Chatime will refund the initial franchise fee within 14 days of receiving the termination notice. This refund policy provides a short window for franchisees to reconsider their decision with the possibility of recovering the initial fee.
For franchisees considering a multi-unit development agreement, the initial franchise fee structure is different. The multi-unit development fee, which ranges from $98,900 to $274,900 depending on the number of locations, serves as a full credit against the initial franchise fee for each individual Chatime store. This means that franchisees entering into a multi-unit agreement do not have to pay the standard $54,900 initial franchise fee for each location, as it is covered by the development fee.
This fee structure is fairly typical in the franchise industry, where initial fees compensate the franchisor for the costs associated with granting the franchise, including training, support, and brand access. The multi-unit development fee structure incentivizes franchisees to commit to opening multiple locations, providing Chatime with a faster expansion strategy while potentially reducing the upfront costs for the franchisee per location.