When is the initial franchise fee payable to Chatime?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
ree months, unless otherwise indicated:
| Estimated Amount | Method of | When | Payable to | |
|---|---|---|---|---|
| Type of Expenditure | ||||
| Range | Payment | Payable | Whom | |
| Initial Franchise Fee(1) | $54,900 | Lump sum | Upon si |
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 of $54,900 is payable as a lump sum upon signing the Franchise Agreement. This fee is non-refundable. However, there is an exception: if the franchisee provides Chatime with a termination notice within seven days of signing the Franchise Agreement, Chatime will return the initial franchise fee within 14 days of receiving the termination notice.
For franchisees entering into a Multi-Unit Development Agreement, the timing of the initial franchise fee payment differs. In this case, a multi-unit development fee, ranging from $134,900 to $274,900 for three to ten locations, is paid at the signing of the Multi-Unit Development Agreement. This fee grants the franchisee the right to develop multiple Chatime stores within a specific geographic area according to an agreed-upon schedule.
Importantly, the multi-unit development fee serves as a full credit against the initial franchise fee for each individual Chatime store location, including the first one. Therefore, franchisees who pay the multi-unit development fee are not required to pay an additional initial franchise fee when they sign the individual Franchise Agreement for each location. This structure is designed to incentivize and support franchisees who commit to developing multiple Chatime locations.