factual

What is the nonrefundable Initial Franchise Fee for a single Chatime franchise?

Chatime Franchise · 2025 FDD

Answer from 2025 FDD Document

ill be $200 per person per day.

Initial Fees Payable Single Unit Franchise Three Unit Multi-Unit Ten Unit Multi-Unit
to Franchisor or Agreement Development Development
Affiliates Agreement Agreement
Franchise $54,900 $134,900 $274,900
Fee
Opening $10,000 to $16,000 $10,000 to $216,000 $10,000 to $16,000
Inventory
and
Supplies for First
Location
Technology $10,500 to $14,000 $10,500 to $14,000 $10,500 to $14,000
Systemsfor
First Location
Uniformsfor $500 to $1,500 $500 to $1,500 $500 to $1,500
First
Location
Initial $5,000 $5,000 $5,000
Training
for
First
Location
Total $80,900 to $91,400 $160,900 to $171,400

Source: Item 5 — Initial Fees (FDD pages 11–13)

What This Means (2025 FDD)

According to Chatime's 2025 Franchise Disclosure Document, the nonrefundable Initial Franchise Fee for a single unit franchise is $54,900. This fee is payable when the Franchise Agreement is signed. While the fee is generally nonrefundable, there is a provision for a refund if the franchisee terminates the agreement within seven days of signing. In such a case, Chatime will return the Initial Franchise Fee within 14 days of receiving the termination notice.

This initial franchise fee is a standard practice in the franchising industry, serving to compensate Chatime for granting the franchisee the rights to operate under its brand, use its systems, and receive initial training and support. It's important to note that this fee is separate from other initial investments, such as opening inventory, technology systems, uniforms, and initial training fees, which can range from $26,000 to $32,000, bringing the total initial fees to between $80,900 and $91,400.

Prospective franchisees should be aware of the nonrefundable nature of the initial franchise fee, as well as the other initial costs, and carefully consider their financial capacity before entering into a franchise agreement with Chatime. Understanding the conditions under which a refund is possible, such as the seven-day termination window, is also crucial. It is also important to note that the initial franchise fee only covers the right to open one Chatime store. If a franchisee wishes to open multiple locations, they must enter into a separate multi-unit development agreement and pay a separate, non-refundable multi-unit development fee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.