What is the multi-unit development fee for Chatime if I want to open two locations?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
it Development Agreement chart above:**
- If you sign a multi-unit development agreement, you will pay us, when you sign that agreement, a non-refundable fee for the right to development multiple franchise units. You agree to open and operate the agreed number of Chatime Stores within a specific geographic area according to an agreed development schedule. The amount of the multi-unit development fee will depend on the number of locations to be opened. For each location, you will have to sign a separate individual unit franchise agreement in our then-current form of franchise agreement, which may be different than our current form of franchise agreement. The multi-unit development fee will serve as a full credit against the initial franchise fee for each location (including the first location), so that you will not be required to pay an initial franchise fee at the time you sign each Franchise Agreement 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. The multi-unit development fee is fully-earned by us upon receipt and is not refundable under any circumstances, r
Source: Item 7 — Estimated Initial Investment (FDD pages 17–22)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, if you sign a multi-unit development agreement to open two Chatime locations, you must pay a non-refundable fee of $98,900. This fee grants you the right to develop multiple franchise units within a specific geographic area, following an agreed-upon development schedule.
The multi-unit development fee serves as a full credit against the initial franchise fee for each location, including the first. This means you won't have to pay a separate initial franchise fee when you sign the individual franchise agreements for each location. However, for each location, you will have to sign a separate individual unit franchise agreement in Chatime's then-current form, which may be different than the current franchise agreement.
It's important to note that this fee is fully earned by Chatime upon receipt and is non-refundable under any circumstances, regardless of how many units you ultimately open. This highlights the importance of careful planning and due diligence before committing to a multi-unit development agreement with Chatime.
The FDD also notes that the total initial investment for a multi-unit development agreement for three to ten locations ranges from $373,100 to $699,900. This figure includes the multi-unit development fee plus the estimated initial investment for the first location, excluding the initial franchise fee, which is covered by the multi-unit development fee.