Does Chatime require minimum sales quotas for each individual outlet?

According to Chatime's 2025 Franchise Disclosure Document, Chatime does not require minimum sales quotas for each individual outlet. However, if a franchisee signs a Multi-Unit Development Agreement, they must open and operate no fewer than the number of Outlets specified in their Development Quota. This means that while individual stores are not held to a sales target, franchisees with multiple locations are obligated to open a certain number of Chatime stores based on an agreed-upon schedule.

This distinction is important for potential franchisees to understand. Single-unit franchisees will not be penalized for low sales numbers, giving them some flexibility as they establish their business. Multi-unit developers, on the other hand, must adhere to the development quota, meaning they need to open a certain number of Chatime stores to maintain their development rights.

Chatime may terminate a multi-unit franchisee's Development Rights, vary their Development Territory, and/or terminate the exclusivity attached to the Development Rights if the franchisee does not continue to meet Chatime's then-current guidelines for multi-unit development and ownership. This could allow Chatime to develop and operate franchises in the franchisee's Development Territory or grant a right to a third party to develop and operate franchises in the Development Territory.