Must each Chatime outlet location in my Development Territory meet specific standards?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Outlet's location in your Development Territory must be approved by us in writing and meet our then-current real estate, brand and design standards. We will approve each additional location under the Multi-Unit Development Agreement using our then-current site criteria. For each Outlet, you must comply with all your obligations to us and sign our then-current form of the Franchise Agreement with all then-current ongoing fees. The then-current Franchise Agreement may contain materially different terms and conditions than your original Franchise Agreement.
If you do not continue to meet our then-current guidelines for multi-unit development and ownership, we may terminate your Development Rights, vary your Development Territory, and/or terminate the exclusivity attached to the Development Rights in our discretion (following which we may ourselves develop and operate franchises in your Development Territory or may grant a right to a third party to develop and operate franchises in your Development Territory).
We do not require minimum sales quotas for each individual Outlet; provided, however, that you must have open and operating no fewer than the number of Outlets specified in your Development Quota.
Source: Item 12 — Territory (FDD pages 35–38)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, each outlet location within a franchisee's Development Territory must receive written approval from Chatime and adhere to the brand's real estate, brand, and design standards that are current at the time of approval. This is a standard practice in franchising, ensuring brand consistency across all locations. Chatime will use its then-current site criteria when evaluating each additional location under a Multi-Unit Development Agreement.
For each outlet, the franchisee must fulfill all obligations to Chatime and sign the then-current form of the Franchise Agreement, which includes all ongoing fees applicable at that time. It's important to note that the terms and conditions of the Franchise Agreement in effect at the time of signing for each new location may differ materially from the original Franchise Agreement. This means that as a multi-unit franchisee expands, they may be subject to updated terms and fees, which could impact profitability and operational procedures.
Chatime may terminate a franchisee's Development Rights, alter the Development Territory, or end the exclusivity attached to the Development Rights if the franchisee fails to meet the then-current guidelines for multi-unit development and ownership. If this occurs, Chatime reserves the right to develop and operate franchises within the territory or grant that right to a third party. While Chatime does not impose minimum sales quotas for each individual outlet, franchisees must maintain the number of open and operating outlets as specified in their Development Quota.