How is the Renewal Development Fee determined for a Chatime Developer who exercises their option to enter a new development business agreement?

According to Chatime's 2025 Franchise Disclosure Document, if a developer exercises their option to enter into a new development business agreement for a new term, they must pay a Renewal Development Fee. The exact amount of this fee is determined based on the then-current form of the Multi-Unit Development Agreement. This implies that the fee is not fixed and can change over time, as it is tied to the current agreement in place at the time of renewal.

For a prospective Chatime developer, this means that the cost of renewing their development agreement is subject to the terms outlined in the Multi-Unit Development Agreement that is current at the time of renewal. The franchisee should carefully review the then-current agreement to understand the financial obligations associated with the renewal. This fee is separate from the initial Development Fee, which is a one-time payment made when the initial Multi-Unit Development Agreement is signed.

It is important for developers to factor in the potential for changes in the Renewal Development Fee when planning for the long-term operation of their Chatime franchise. They should also be aware that the new franchise agreement may contain different terms and conditions from the original agreement. Developers should consult with Chatime to understand what the Renewal Development Fee is at the time of renewal.