Does Chatime make any representation or warranty as to the suitability of the premises for the Chatime Outlet?

According to Chatime's 2025 Franchise Disclosure Document, Chatime makes no representation or warranty regarding the suitability of any premises or site for a Chatime Outlet approved by them. They also do not guarantee that the operation of an Outlet will be profitable or successful. This means that the franchisee bears the responsibility and risk of selecting a location that will be viable for their business.

This disclaimer is a standard practice in the franchise industry, as the success of a location can depend on numerous factors outside the franchisor's control, such as local market conditions, competition, and the franchisee's management skills. Chatime also states that they are not responsible for the actions or omissions of anyone involved in the design of any Outlet, including architects or consultants engaged by them.

Therefore, prospective Chatime franchisees should conduct thorough due diligence on potential locations, including market research, demographic analysis, and traffic studies, before committing to a lease. It would be prudent to seek advice from experienced real estate professionals and business advisors to assess the suitability of a site for a Chatime Outlet. Franchisees should also carefully review the lease agreement and understand their obligations and responsibilities as a tenant.