According to Chatime's 2025 Franchise Disclosure Document, a developer must hold the lease or other Occupancy Right approved by Chatime for the premises at all Outlets, or have step-in rights approved by Chatime. The Occupancy Right is defined as any right to occupy the premises of an Outlet including as lessee, sublessee, licensee, or the holder of some other interest in the premises conferring an enforceable right to use or occupy them.

Furthermore, the franchisee must obtain a Lease Addendum, signed by the franchisee, Chatime, and the Landlord, in the form required under the unit Franchise Agreement. This addendum gives Chatime the option, but not the obligation, to assume the lease if the franchisee defaults on the lease. It also requires the Landlord to give written notice to Chatime of any defaults by the franchisee.

Unless prohibited by law or commercially impractical (which must be demonstrated to Chatime), the developer must ensure that all leases, subleases, licenses, or other documents granting an occupancy right to the developer include a provision which permits the developer's rights under such leases, subleases, licenses, or other documents to be assigned or otherwise transferred to Chatime or its nominee, at Chatime's option, on termination or expiration of this Agreement. This ensures Chatime has control over the locations of its franchises and can maintain operations even if a franchisee defaults or the agreement is terminated.