What is the Multi-Unit Development Fee for ten Chatime 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 for 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. The FDD specifies that the Multi-Unit Development Fee will serve as a full credit against the initial franchise fees for each location, meaning the franchisee will not be required to pay an additional Initial Franchise Fee for each individual location.
For context, the initial franchise fee for a single Chatime unit is $54,900. Therefore, the multi-unit development fee offers a potential discount compared to paying the initial franchise fee for each store separately. However, the multi-unit development fee is fully earned by Chatime upon receipt and is not refundable under any circumstances, regardless of the number of units the franchisee ultimately opens.
In addition to the multi-unit development fee, the franchisee should also anticipate other initial costs, such as opening inventory and supplies, technology systems, uniforms, and initial training. These costs range from $10,000 to $16,000 for opening inventory and supplies, $10,500 to $14,000 for technology systems, $500 to $1,500 for uniforms, and a $5,000 initial training fee. These costs are per location.