What is the non-refundable Initial Franchise Fee for a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
| Estimated Amount | Method of | When | Payable to | ||
|---|---|---|---|---|---|
| Type of Expenditure | |||||
| Range | Payment | Payable | Whom | ||
| Initial Franchise Fee(1) | $54,900 | Lump sum | Upon signing Franchise Agreement | Us | |
| Initial Training, Opening | $5,000 | As arranged | As incurred | Us | |
| Support and | |||||
| Related Personnel Cost(2) | |||||
| Rent(3) | $6,000 to $33,000 | As arranged | As specified in lease | Landlord | |
| Lease Security Deposit (3) | $4,000 to $22,000 | As arranged | As specified in lease | Landlord | |
| Storage Space Deposit(3) | $0 to $1500 | As arranged | As specified in lease | Third party | |
| Leasehold Improvements (4) | $135,000 to $226,000 | As arranged | As incurred | Third party or Us | |
| Equipment (5) | $33,500 to $46000 | As arranged | As incurred | Third party | |
| External Signage | $4,200 to $9,500 | As arranged | As incurred | Third party | |
| Estimated Amount | Method of | When | Payable to | ||
| Type of Expenditure | Range | Payment | Payable | Whom | |
| Opening Inventory and | $10,000 to $16,000 | As arranged | As incurred | Our affiliates | |
| Supplies(6) | |||||
| Grand opening marketing(7) | $10,000 | As arranged | As incurred | Third parties | |
| Licenses, Permits, and | $3,500 to $5,500 | As arranged | Lump sum | Third party | |
| Utility Deposits(8) | |||||
| Technology Systems(9) | $10,500 to $14,000 | As arranged | As incurred | Third party or us | |
| Uniforms | $500 to $1,500 | As arranged | As incurred | Us or third party | |
| Insurance(10) | $3,000 to $6,000 | As arranged | As incurred | Third party | |
| Professional Fees | $1,000 to $5,000 | As arranged | As incurred | Third party | |
| Additional Funds – Three | $12,000 to $24,000 | As arranged | As incurred | Third party | |
| Months(11) | |||||
| Total Estimated Initial | $ 293,100 to $479,900 | ||||
| Investment | # Notes: |
- (1) Initial Franchise Fee and Other Fees. You will pay us a non-refundable $54,900 Initial Franchise Fee. All of the fees paid to us are non-refundable except that, if you give us notice of termination within seven days after execution of your Franchise Agreement, we will return the Initial Franchise Fee within 14 days after receiving your notice of termination. Fees paid to vendors or other suppliers may be refundable
Source: Item 7 — Estimated Initial Investment (FDD pages 17–22)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the initial franchise fee is $54,900. This fee is non-refundable, meaning that under most circumstances, Chatime will not return this money to the franchisee. However, there is an exception: if the franchisee terminates the Franchise Agreement within seven days of signing, Chatime will return the initial franchise fee within 14 days of receiving the termination notice.
This initial franchise fee grants the franchisee the right to operate a Chatime store. It is a one-time fee paid upfront. The FDD specifies that the fee is paid in a lump sum upon signing the Franchise Agreement.
It is important for prospective franchisees to understand the conditions under which the initial franchise fee can be refunded, as in most cases, it is non-refundable. This is a common practice in franchising, as the initial fee covers Chatime's initial costs in setting up the franchisee, providing training, and awarding them the franchise rights. Franchisees should carefully review the Franchise Agreement and consider this refund policy before signing.