Does Chatime provide site selection criteria, and what else do they designate regarding site selection?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
We will provide you with our site selection criteria and we will designate a geographic area in which you must select the site. We do not select the site. We will review your proposal for the site location. Your site must be approved by us and developed by you in accordance with our requirements. If you sign a Multi-Unit Development Agreement, you must find a suitable location for each additional location in time to meet the development schedule. We will approve each additional location under the Multi-Unit Development Agreement using our then-current site criteria. We will not reimburse you for any costs you incur for any location you submit to us for review and approval. (Clauses 4.7, 4.8 and 4.9 of the Franchise Agreement).
The time limit for us to approve or disapprove a proposed site is within 30 days of your submission. If we do not approve a proposed site, we will provide a written notice to you (i) specifying that approval is withheld, and (ii) setting out the reasons approval is withheld. If any additional information is requested by us for a proposed site, the 30 day-period will restart on the date of our receipt of any such additional information. (Clauses 4.7, 4.8 and 4.9 of the Franchise Agreement). If we cannot agree on a site, we may terminate your franchise agreement and your initial fee will be forfeited.
We may approve or disapprove a proposed site in our discretion. Factors affecting our approval generally include location, occupancy costs, proximity to major retail activity, traffic volume and speed, density of nearby population (resident or daytime), competition and potential for encroachment on other Chatime Stores, site configuration, parking, accessibility, visibility, signage permitted by the landlord and local governmental authorities, and other factors. (Clauses 4.7, 4.8 and 4.9 of the Franchise Agreement). You will not begin any construction on a site without our prior approval. (Clause 4.11 of the Franchise Agreement).
You will provide us with all required information about a site you propose. You will provide a copy of the site lease for our record. We do not pay "finders' fees" for sites. We do not generally own or take a prime lease on real estate and then lease it to our franchisees. We are not required to provide you with assistance in negotiating the purchase or lease of a site, but we may do so in some cases by providing certain supporting data on the site. (Clauses 4.8, 4.9, and 5.4 of the Franchise Agreement).
We will review your lease to ensure that you have obtained a lease addendum, in substantially the form attached to the Franchise Agreement, which must give us the option but not the obligation to assume the lease if you default on the lease, and which must require the landlord to give written notice to us of any defaults by you. (Clause 4.9 of the Franchise Agreement).
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 27–35)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Chatime provides franchisees with site selection criteria and designates a geographic area where the site must be selected. However, the franchisee is responsible for actually selecting the site. Chatime must approve the site, and it must be developed according to Chatime's requirements. If a franchisee signs a Multi-Unit Development Agreement, they must find suitable locations for each additional store according to the development schedule, and Chatime will approve each additional location using its then-current site criteria. Chatime will not reimburse franchisees for any costs incurred for locations submitted for review and approval.
The FDD states that Chatime has 30 days to approve or disapprove a proposed site from the time of submission. If Chatime needs more information, the 30-day period restarts upon receipt of the additional information. If Chatime disapproves, they will provide a written notice specifying the reasons for withholding approval. Chatime may terminate the franchise agreement if an agreeable site cannot be found, and the initial fee will be forfeited.
Chatime may approve or disapprove a proposed site at their discretion, considering factors such as location, occupancy costs, proximity to major retail activity, traffic volume and speed, population density, competition, potential encroachment on other Chatime stores, site configuration, parking, accessibility, visibility, and signage. Franchisees cannot begin construction without Chatime's prior approval. Franchisees must provide all required information about the proposed site and a copy of the site lease for Chatime's records. Chatime does not pay finder's fees for sites and does not generally own or take a prime lease on real estate to lease to franchisees. Chatime is not required to assist in negotiating the purchase or lease of a site but may provide supporting data. Chatime will review the lease to ensure a lease addendum is obtained, giving Chatime the option to assume the lease if the franchisee defaults and requiring the landlord to notify Chatime of any defaults by the franchisee.