Who is responsible for the construction and development of the Chatime Outlet?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
4.11 Construction of the Outlet
(1) Franchisee is responsible for the construction and development of the Outlet in accordance with the System Standards. All plans and specifications for the Outlet must, if required by Franchisor, be approved by Franchisor.
(2) Franchisee must use Franchisor's approved suppliers for real estate and construction management services, construction due diligence, architectural, engineering and design services, construction permit acquisition and management services, and construction site visits, in connection with the construction and development of the Outlet. All construction of the Outlet under this Agreement must be undertaken by competent and licensed building contractors and subcontractors.
(3) Franchisor may, in its sole discretion, approve or not approve an application for designing the interior and exterior of the Outlet.
(4) In the construction of the Outlet in the Territory, Franchisee must ensure that it complies with:
(a) Franchisor's System Standards in relation to the construction of the Outlet; and
(b) All Legal Requirements, including applicable ordinances, building codes and permit requirements and with lease requirements and restrictions.
(5) Franchisee must obtain Franchisor's written approval of any material revision or adaptation of Franchisee's plans and specifications, previously approved by Franchisor (Approved Plans). Franchisor must approve or disapprove any changes to the Approved Plans within 10 Business Days from receipt of the proposed changes.
If Franchisor approves any revision or adaptation of the construction plans and specifications, upon completion of construction, Franchisee must provide Franchisor with a set of "as built" plans and specifications.
4.12 Acknowledgment
Franchisee acknowledges that Franchisor has the right, but no obligation, to approve architects and other design and construction professionals to help ensure consistency, uniformity, and quality with the System and the Chatime image.
4.13 Franchisor's Inspection Rights
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)
According to Chatime's 2025 Franchise Disclosure Document, the franchisee is responsible for the construction and development of their Chatime outlet. This construction and development must be completed in accordance with Chatime's System Standards. If required by Chatime, all plans and specifications for the outlet must be approved by Chatime.
To ensure quality and consistency, the franchisee must use Chatime's approved suppliers for services such as real estate and construction management, architectural design, engineering, and permit acquisition. All construction work must be performed by competent and licensed building contractors and subcontractors. Chatime retains the right to approve or disapprove the interior and exterior design of the outlet.
The franchisee must also ensure that the construction complies with Chatime's System Standards, all legal requirements (including ordinances, building codes, and permit requirements), and lease requirements. Any material revisions to the approved plans must receive Chatime's written approval, which Chatime must grant or deny within 10 business days of receiving the proposed changes. Upon completion of construction, the franchisee must provide Chatime with a set of "as built" plans and specifications.
Chatime also has the right, but not the obligation, to approve architects and other design and construction professionals to maintain consistency and quality within the Chatime system. Chatime, its affiliates, consultants, and agents have the right to inspect the outlet and construction work to verify progress and compliance with the franchise agreement.