What is the range of the Multi-Unit Development Fee for a Chatime franchise, covering three to ten locations?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of |
|---|---|---|
| Multi-Unit Development Fee for three to ten locations | $134,900 to $274,900 | Lump Sum |
Source: Item 7 — Estimated Initial Investment (FDD pages 17–22)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the Multi-Unit Development Fee for three to ten locations ranges from $134,900 to $274,900. This fee is paid as a lump sum when signing the Multi-Unit Development Agreement. This agreement grants the franchisee the right to develop multiple Chatime franchise units within a specific geographic area, following an agreed-upon development schedule.
The Multi-Unit Development Fee serves as a full credit against the initial franchise fee for each location, including the first one. This means that franchisees will not have to pay an additional initial franchise fee when they sign the individual franchise agreements for each location. The fee is considered fully earned by Chatime upon receipt and is non-refundable under any circumstances, regardless of how many units the franchisee ultimately opens.
For prospective multi-unit franchisees, understanding this fee structure is crucial for financial planning. The initial investment for a multi-unit development agreement for three to ten locations ranges from $373,100 to $699,900, which includes the Multi-Unit Development Fee and the estimated initial investment to open the first Chatime store. The low-end figure of $373,100 represents the estimated initial investment for a three-location agreement, while the high-end figure of $699,900 is for a ten-location agreement. Franchisees should carefully consider these costs and the non-refundable nature of the development fee when deciding to pursue a multi-unit development strategy with Chatime.