What is the maximum lease term allowed on the new location when relocating a Chatime store?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
You do not have the right to relocate your Chatime Store without our permission. If you request relocation, you must obtain our prior written approval for the site and meet our then-current criteria for relocation. Our approval process is substantially the same process we use in approving a new location. You must comply with all your obligations to us and sign our then-current form of Franchise Agreement with all then-current ongoing fees, for a term equal to the term remaining on your Franchise Agreement for the previous location or to align with the new lease term being no
greater than 10 years on the new location, at a pro rata fee of the initial Franchise Fee entered into. The then-current Franchise Agreement may contain materially different terms and conditions than your original Franchise Agreement. There is no additional Initial Franchise Fee paid to us for relocation unless we grant you a term greater than the term remaining on the Franchise Agreement for the previous location.
Source: Item 12 — Territory (FDD pages 35–38)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a franchisee needs prior written approval from Chatime to relocate their store. The approval process for relocation is similar to that of approving a new location. When relocating a Chatime store, the franchisee must adhere to all obligations to Chatime and sign the then-current Franchise Agreement, which includes all then-current ongoing fees.
The term of the new Franchise Agreement will be equal to the remaining term of the Franchise Agreement from the previous location. However, if the new lease term is longer than the remaining term of the original agreement, the new Franchise Agreement term can align with the new lease term.
If the new lease term is greater than 10 years on the new location, the franchisee will have to pay a pro rata fee of the initial Franchise Fee. The new Franchise Agreement may also contain different terms and conditions than the original Franchise Agreement. Chatime does not require an additional Initial Franchise Fee for relocation unless the term granted is longer than the term remaining on the Franchise Agreement for the previous location.