How long does Chatime have to provide approval or non-approval of a proposed site, assuming the franchisee meets all requirements?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to a reasonable belief by Franchisor that Franchisee will meet all requirements under clause 4.8, Franchisor must provide its approval or non-approval to the proposed Site within 30 days after receiving all the information required by Franchisor. Where Franchisor does not approve a proposed Site, it must provide to Franchisee 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, once a franchisee submits all required information for a proposed site, Chatime has 30 days to provide either approval or non-approval, assuming Chatime reasonably believes the franchisee will meet all requirements. If Chatime does not approve the site, they must provide a written notice specifying that approval is withheld and explaining the reasons for the decision.
It's important to note that if Chatime requests additional information regarding the proposed site, the 30-day period begins upon receipt of this additional information. This means the approval process could potentially extend beyond the initial 30-day window if additional information is needed.
This clause protects the franchisee by ensuring Chatime makes a timely decision on the proposed site. It also requires Chatime to provide a written explanation if the site is not approved, which can help the franchisee understand the reasons for the denial and potentially address any concerns in future site selections. Franchisees should ensure they understand all requirements for site approval to avoid delays.