What renovation and refurbishment requirements are there for existing Chatime Outlets as a condition of renewal?

According to Chatime's 2025 Franchise Disclosure Document, a significant condition for renewing a Multi-Unit Development Agreement is the renovation and refurbishment of older outlets. Specifically, any Chatime outlet that has been in operation for five or more years must be renovated and refurbished. This includes replacing or upgrading plant, equipment, fixtures, fittings, and signs as Chatime may reasonably require.

The purpose of this renovation is to ensure that these older Chatime outlets meet the then-current standards and specifications for new outlets. This requirement also ensures compliance with any legal requirements at the time of renewal. This clause aims to maintain brand consistency and customer experience across all Chatime locations, regardless of their age.

For a prospective Chatime franchisee, this means that they should anticipate a significant capital expenditure for renovations as a condition of renewing their franchise agreement, especially if they plan to operate their outlets for longer than five years. It is important for franchisees to factor in these potential costs when projecting the long-term profitability of their Chatime franchise. Furthermore, the franchisee is responsible for ensuring these renovations meet Chatime's current standards, which may evolve over time, potentially adding to the cost and complexity of the refurbishment process.