Does Chatime make any representation or warranty as to the suitability of any premises or site for an Outlet?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) Franchisor may from time to time modify site selection criteria and processes. Developer must use the site selection criteria and processes as approved by Franchisor (Development Area Site Selection Criteria) for the selection of sites in the Development Area.
(2) Developer must select sites in the Development Area that it reasonably believes conform with the Development Area Site Selection Criteria.
Developer acknowledges that Franchisor has agreed to grant the Development Business to Developer in reliance on the character, skills and financial capacity of Developer, the Owners and the General Manager, that the establishment and operation of Developer's Operation will involve significant financial risks, and that the success of Developer's Operation will depend upon the skills and financial capacity of Developer and the Owners and also upon changing economic and market conditions.
- (3) Developer acknowledges and agrees that it has conducted an independent investigation of the business contemplated by this Agreement and recognizes that it involves business risks making the success of the venture largely dependent on the business abilities of Developer. Franchisor expressly disclaims the making of, and Developer acknowledges that it has not received or relied upon, any warranty or guarantee expressed or implied as to the potential volume
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, the franchisor may modify site selection criteria and processes from time to time. The developer, or franchisee, must use the site selection criteria and processes as approved by Chatime for selecting sites in the Development Area. The franchisee must select sites in the Development Area that it reasonably believes conform with the Development Area Site Selection Criteria.
Chatime's FDD states that the developer acknowledges they have conducted an independent investigation of the business and recognizes that it involves business risks, making the success of the venture largely dependent on the business abilities of the developer. Chatime expressly disclaims making, and the developer acknowledges that it has not received or relied upon, any warranty or guarantee expressed or implied as to the potential volume.
In summary, while Chatime sets the criteria for site selection, the franchisee is responsible for finding a site that meets those criteria and acknowledges that the success of the business depends on their own abilities. Chatime does not provide any guarantees or warranties regarding the suitability or potential success of a particular site.