What is the Multi-Unit Development Fee for two Chatime locations?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
notice of termination.
We also offer multi-unit development agreements under which you agree to open and operate an agreed number of Chatime Stores within a specific geographic area according to an agreed development schedule. If you enter into a multi-unit development agreement, you will pay us a non-refundable multi-unit development fee at the time of signing the multi-unit development agreement. 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 ("Multi-Unit Development Fee") will serve as a full credit against the initial franchise fees 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. 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 who signs a multi-unit development agreement to open two Chatime stores will pay a Multi-Unit Development Fee of $98,900. This fee is non-refundable and is due at the time of signing the multi-unit development agreement. This fee serves as a full credit against the initial franchise fees for both locations, meaning the franchisee will not have to pay the standard initial franchise fee for each individual location.
Chatime offers multi-unit development agreements for franchisees who commit to opening multiple locations within a specific geographic area according to a set schedule. For each location, the franchisee must sign a separate individual unit franchise agreement, which may be different from the current standard franchise agreement. The Multi-Unit Development Fee is fully earned by Chatime upon receipt and is not refundable under any circumstances, regardless of how many units the franchisee ultimately opens.
In the franchise industry, multi-unit development fees are common for brands looking to expand rapidly. These fees incentivize franchisees to commit to multiple locations, providing the franchisor with a guaranteed expansion plan. While the initial investment is higher, the credit against future franchise fees can be beneficial for franchisees planning to open multiple units. However, the non-refundable nature of the fee represents a risk, as market conditions or personal circumstances could change, making it difficult to fulfill the development agreement. Therefore, prospective Chatime franchisees should carefully consider their ability to meet the development schedule before entering into such an agreement.