Will Chatime reimburse me for costs incurred for location review and approval?
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).
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 will not reimburse franchisees for any costs incurred during the location review and approval process. The franchisee is responsible for all expenses associated with finding and submitting potential sites for Chatime's approval.
Chatime does provide site selection criteria and designates a geographic area where the franchisee must select a site. Chatime will review the franchisee's site proposal and has 30 days to approve or disapprove of the proposed site. If Chatime needs additional information, the 30-day period restarts upon receipt of the new information. If Chatime disapproves, they will provide a written notice with the reasons for disapproval.
If Chatime and the franchisee cannot agree on a site, Chatime may terminate the franchise agreement, and the initial fee will be forfeited. Site approval is at Chatime's discretion, considering factors like location, occupancy costs, proximity to retail activity, traffic, population density, competition, site configuration, parking, accessibility, visibility, and signage. The franchisee cannot begin construction without Chatime's prior approval.