To whom is the Multi-Unit Development Fee paid when establishing a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
imate above for a single Chatime Store.
| Type of Expenditure | Amount | Method of | When Due | To Whom |
|---|---|---|---|---|
| Payment | Payment is to be Made | |||
| Multi-Unit Development Fee for three to ten locations | $134,900 to $274,900 |
Source: Item 7 — Estimated Initial Investment (FDD pages 17–22)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the Multi-Unit Development Fee is paid to "Us", meaning the franchisor. This fee is required when signing a Multi-Unit Development Agreement, which grants the franchisee the right to develop multiple Chatime franchise units within a specific geographic area according to an agreed-upon schedule. The fee is non-refundable and is fully earned by Chatime upon receipt.
The amount of the Multi-Unit Development Fee varies depending on the number of locations to be opened. 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. This fee serves as a full credit against the initial franchise fee for each location, including the first, so franchisees will not have to pay an additional initial franchise fee when signing individual franchise agreements for each location.
The total initial investment for a multi-unit development agreement for three to ten locations ranges from $373,100 to $699,900. This range includes the Multi-Unit Development Fee and the estimated initial investment to open the first Chatime store. The low-end figure of $373,100 is the low-end estimated initial investment for a multi-unit development agreement for three locations, including a Multi-Unit Development Fee of $134,900 and an estimated initial investment of $238,200 for the first location. The high-end figure of $699,900 is the high-end estimated initial investment for a multi-unit development agreement for ten locations, including a Multi-Unit Development Fee of $274,900 and an estimated initial investment of $425,000 for the first location.