What is the name of the agreement that Chatime multi-unit developers must execute?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
We also offer multi-unit development agreement franchises to qualified persons who must establish certain minimum numbers of Chatime Stores within a designated geographic territory (a "Development Territory"). If we grant you a multi-unit development agreement franchise, you will execute our standard form of multi-unit development agreement attached as Exhibit C (the "Multi-Unit Development Agreement") and be granted the right to begin opening Chatime Stores in your Development Territory (the "Development Rights"). Your master franchise business includes the obligation to open a certain number of Chatime Stores in your Development Territory in accordance with a specified schedule (the "Development Quota"). Upon establishing each additional outlet under the Multi-Unit Development Agreement, you will be required to sign our then-current Franchise Agreement, which may differ from the current Franchise Agreement included with this Franchise Disclosure Document. If you fail to meet your Development Quota or fail to comply with any financial obligation relating to the Development Rights, we may terminate your Development Rights, reduce or eliminate your Development Territory or the territorial protections provided under your Multi-Unit Development Agreement, or take other action we deem appropriate in our discretion.
Source: Item 1 — The Franchisor, and Any Parents, Predecessors, and Affiliates (FDD pages 6–9)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, multi-unit developers who are granted a franchise must execute the "Multi-Unit Development Agreement". This agreement, attached as Exhibit C to the FDD, grants the developer the right to begin opening Chatime stores within their designated Development Territory.
This agreement also places an obligation on the developer to open a specific number of Chatime stores within the Development Territory, according to a set schedule known as the "Development Quota." Upon opening each additional store under the Multi-Unit Development Agreement, the developer is required to sign Chatime's then-current Franchise Agreement, which may differ from the one included in the FDD.
Chatime retains the right to enforce the terms of the Multi-Unit Development Agreement. If a developer fails to meet their Development Quota or does not comply with financial obligations related to the Development Rights, Chatime may terminate the Development Rights, reduce or eliminate the Development Territory or its territorial protections, or take other actions as deemed appropriate by Chatime.