Does Chatime require written approval of any material revision or adaptation of the franchisee's plans and specifications?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
(13) Confidential Information means:
(a) Plans and specifications for the development of the Outlet;
Franchisor, its Affiliates, consultants, and agents have the right to inspect the Outlet and the construction work from time to time during the course of construction to verify the progress of construction and Franchisee's compliance with the terms of this Agreement.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
Based on the 2025 Chatime Franchise Disclosure Document, franchisees must adhere to Chatime's standards and specifications. The FDD defines "Confidential Information" to include "Plans and specifications for the development of the Outlet." This suggests that the initial plans and specifications are confidential and controlled by Chatime. Additionally, Chatime retains the right to inspect the Outlet during construction to ensure compliance with the franchise agreement terms.
While the FDD excerpts do not explicitly state that written approval is required for every revision or adaptation to the plans, the level of control Chatime exerts over the initial plans and construction implies that significant changes would likely need their approval. The franchisee is responsible for ensuring the outlet meets Chatime's standards.
Prospective franchisees should clarify with Chatime the extent to which they can modify the initial plans and specifications and the process for obtaining approval for any changes. Understanding the flexibility allowed in the design and construction phase is crucial for budgeting and ensuring the franchisee can create a functional and appealing store within the brand's guidelines.