On what page of the Chatime FDD can I find information about initial and continuing fees for a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
6 Initial and Continuing Fees
6.1 New Outlet Fee
Franchisee must pay the New Outlet Fee to Franchisor upon signing this Franchise Agreement.
6.2 Royalty
5 Initial and Continuing Fees
5.1 Development Fee
Developer must pay the Development Fee to Franchisor in accordance with the payment schedule set out in Section 6 of Schedule 1. You must pay Development Fee in one lump sum when you sign this Multi-Unit Development Agreement. The Development Fee replaces, and serves as a full credit against, the Initial Franchise Fee for each Outlet you agree to open (including but not limited to your first Outlet). The Development fee is fully earned by us upon our receipt, and it is not refundable any circumstances, regardless of how many Outlets you actually open.
5.2 Renewal Development Fee
- (56) Renewal Outlet Fee means the fee payable by Franchisee to Franchisor upon an existing Outlet being renewed for a further term, in the amount of twenty-five percent (25%) of the then-current New Outlet Fee.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, information regarding initial and continuing fees can be found under the sections titled "Initial and Continuing Fees." Specifically, for new franchisees, section 6.1 discusses the New Outlet Fee, which is paid upon signing the Franchise Agreement. For developers looking to open multiple units, section 5.1 outlines the Development Fee, which is paid according to the schedule in Section 6 of Schedule 1 and serves as a credit against the Initial Franchise Fee for each outlet. Section 5.2 then mentions the Renewal Development Fee. These sections indicate where the FDD addresses the upfront and ongoing costs associated with opening and operating a Chatime franchise.
For prospective Chatime franchisees, understanding these fees is crucial for assessing the overall investment and financial obligations. The New Outlet Fee represents an initial cost for starting a single franchise, while the Development Fee is relevant for those planning to expand with multiple locations. The FDD also mentions an Initial Training Fee, which covers the cost of the initial training program provided to the franchisee and their team.
The FDD also defines the "Renewal Outlet Fee" as being "in the amount of twenty-five percent (25%) of the then-current New Outlet Fee." This is an important consideration for franchisees as they approach the end of their initial franchise term, as it represents a significant cost for continuing to operate their Chatime location. Franchisees should carefully review these sections and consult with Chatime to fully understand the current fee structure and payment terms.