How is the multi-unit development fee calculated for Chatime if I want to open more than three locations?

According to Chatime's 2025 Franchise Disclosure Document, the multi-unit development fee is calculated based on the number of locations a franchisee commits to opening. For franchisees interested in opening more than three Chatime locations, the development fee is $134,900, plus an additional $20,000 for each location beyond the initial three. This fee is non-refundable and is paid when the multi-unit development agreement is signed.

This multi-unit development fee serves as a credit towards the initial franchise fee for each individual Chatime store, meaning franchisees won't have to pay a separate initial franchise fee when they sign the franchise agreement for each location. The agreement requires the franchisee to open and operate the agreed-upon number of stores within a specific geographic area, following a set development schedule. Each location will have its own franchise agreement, which may differ from the current standard form.

For example, if a franchisee commits to opening five Chatime locations, the multi-unit development fee would be $174,900 ($134,900 + (2 * $20,000)). This fee covers the franchise fees for all five locations. The FDD estimates the total initial investment for a multi-unit development agreement for three to ten locations to be between $373,100 and $699,900, which includes the multi-unit development fee and the estimated initial investment to open the first Chatime store.

It's important to note that the multi-unit development fee is fully earned by Chatime upon receipt and is non-refundable, regardless of how many units the franchisee ultimately opens. Prospective franchisees should carefully consider their ability to meet the development schedule and financial obligations before entering into a multi-unit development agreement.