Who is responsible for the costs associated with complying with modifications to the Chatime System standards?

According to Chatime's 2025 Franchise Disclosure Document, franchisees are solely responsible for the costs associated with complying with any modifications to the Chatime system. This means that if Chatime decides to change its standards or specifications, franchisees will have to bear the financial burden of implementing those changes in their stores.

This responsibility extends to all aspects of the Chatime store's operation, as franchisees must operate in strict conformance with Chatime's methods, standards, and specifications. These standards are communicated in writing through the confidential Operations Manual and other proprietary guidelines. Chatime retains the right to periodically change these standards and specifications as they deem necessary.

For a prospective Chatime franchisee, this implies a potential for unforeseen expenses throughout the term of the franchise agreement. Franchisees should factor in the possibility of needing to invest in updates to equipment, supplies, store layout, or other elements to comply with Chatime's evolving standards. It is important to discuss with Chatime the types of changes that have been implemented in the past and to understand the potential scope and frequency of future modifications to the system standards to better prepare for these costs.