What is the Multi-Unit Development Fee for a Chatime franchisee who commits to opening ten locations?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
ment for each location.
The Multi-Unit Development Fee is as follows: For two locations, the fee is $98,900. For three locations, the fee is $134,900. For more than three locations, the fee is $134,900 plus $20,000 for each additional location. For ten locations, the fee is $274,900. The multi-unit development fee is fully-earned by us upon receipt and is not refundable under any circumstances, regardless of the n
Source: Item 5 — Initial Fees (FDD pages 11–13)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a franchisee entering into a multi-unit development agreement to open ten locations will pay a Multi-Unit Development Fee of $274,900. This fee is non-refundable and is due at the time of signing the multi-unit development agreement. This fee structure is designed for franchisees who commit to opening multiple Chatime stores within a defined geographic area and according to a set schedule.
The Multi-Unit Development Fee serves as a credit against the initial franchise fees for each individual Chatime location, meaning the franchisee will not have to pay the standard initial franchise fee for each store. The initial franchise fee for a single Chatime unit is $54,900. This upfront payment secures the rights to develop and operate multiple Chatime stores, offering a potentially streamlined approach for expansion compared to securing individual franchise agreements separately.
It's important to note that while the Multi-Unit Development Fee covers the initial franchise fees for each location, franchisees are still responsible for other initial costs such as opening inventory, technology systems, uniforms, and initial training. For a ten-unit multi-unit development, these additional initial costs range from $26,000 to $32,000. Prospective franchisees should carefully consider these additional expenses when evaluating the financial commitment required for a multi-unit development agreement with Chatime.