What refurbishment obligations does a Chatime franchisee have for outlets that have been in operation for 5 or more years when renewing their franchise agreement?

According to Chatime's 2025 Franchise Disclosure Document, if a franchisee is renewing their franchise agreement for an outlet that has been in operation for five or more years, they must renovate and refurbish the outlet. This includes replacing or upgrading any plant, equipment, fixtures, fittings, and signs as Chatime may reasonably require. The purpose of this refurbishment is to bring the outlet up to the then-current standards and specifications that Chatime has for all new outlets, as well as to comply with any Legal Requirements.

This obligation is a condition for the renewal of the franchise agreement. Specifically, the franchisee must ensure the renovations and refurbishments are completed to Chatime's satisfaction. This could potentially involve significant costs for the franchisee, as they would need to cover expenses related to upgrading equipment, fixtures, and signage to meet Chatime's current brand standards.

It is important for prospective franchisees to understand that these refurbishment requirements are in place to maintain brand consistency and quality across all Chatime locations. Franchisees should inquire about the typical costs associated with such renovations and the specific standards that Chatime will expect them to meet at the time of renewal. This will help them plan financially for the future and ensure they can comply with the renewal terms.