What is the minimum number of Chatime outlets a franchisee must have open and operating?

According to Chatime's 2025 Franchise Disclosure Document, the minimum number of outlets a franchisee must have open and operating is tied to the Development Quota specified in the Multi-Unit Development Agreement. Chatime does not require minimum sales quotas for each individual outlet. However, franchisees must maintain the number of open and operating outlets as specified in their Development Quota.

This means that if a prospective franchisee signs a Multi-Unit Development Agreement with Chatime, they are obligated to open a certain number of Chatime stores within their Development Territory, according to a set schedule. This number, known as the Development Quota, is negotiated between the franchisee and Chatime. The agreement will specify the timeline for opening these stores, and the franchisee must adhere to this schedule to remain in compliance with the agreement.

Failure to meet the Development Quota can have significant consequences. Chatime may terminate the franchisee's Development Rights, alter the Development Territory, or revoke the exclusivity associated with those rights. If any of these occur, Chatime reserves the right to develop and operate franchises within the territory themselves or grant that right to a third party. Therefore, it is crucial for prospective franchisees to carefully consider their ability to meet the obligations outlined in the Multi-Unit Development Agreement before signing.

Unlike some franchise systems that focus heavily on individual store performance through sales quotas, Chatime emphasizes the importance of area development. This approach incentivizes franchisees to expand the brand's presence within their designated territory, but it also places a significant burden on them to manage multiple locations and meet the agreed-upon development schedule.