Regarding the premises for a Chatime franchise, what must a franchisee ensure if they do not own or lease the relevant premises?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Unless Franchisee owns or leases the relevant Premises, Franchisee must ensure that it promptly obtains a lease for the Premises in respect of which Franchisor has given its approval for the establishment of the Outlet.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, if a franchisee does not own or lease the premises for their Chatime outlet, they must ensure they promptly obtain a lease for the premises. This lease must be specifically approved by Chatime for the establishment of the outlet.
This requirement ensures that Chatime has control over the location of its franchises and that the franchisee has a secure and approved location to operate their business. It protects Chatime's brand image and operational standards by ensuring that each outlet operates from a suitable and approved site.
For a prospective Chatime franchisee, this means that securing an approved lease is a critical step in the franchise process if they do not already own the property. They should work closely with Chatime to identify suitable locations and ensure that the lease terms meet Chatime's requirements. Failing to secure an approved lease could delay or prevent the opening of the franchise.