What is the Multi-Unit Development Fee for three 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, the Multi-Unit Development Fee for three locations is $134,900. This fee is non-refundable and is paid when signing the multi-unit development agreement. This fee serves as a full credit against the initial franchise fees for each of the three locations, meaning the franchisee will not have to pay the standard initial franchise fee for each individual location.
This multi-unit development agreement allows franchisees to open and operate multiple Chatime stores within a specific geographic area, following an agreed-upon development schedule. While the multi-unit development fee covers the initial franchise fees for each location, franchisees must still sign a separate individual unit franchise agreement for each store. It's important to note that the form of the franchise agreement at the time of signing each individual unit agreement may differ from the current form.
For prospective franchisees considering a multi-unit development, understanding the financial commitment and development schedule is crucial. The $134,900 fee is fully earned by Chatime upon receipt and is non-refundable, regardless of how many units are eventually opened. This highlights the importance of careful planning and due diligence before entering into such an agreement. Multi-unit development can be a strategic growth opportunity, but it requires a significant upfront investment and a clear understanding of the franchisor's expectations.