Does Chatime select the site for the franchise location?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
We will provide you with our site selection criteria and we will designate a geographic area in which you must select the site. We do not select the site. We will review your proposal for the site location. Your site must be approved by us and developed by you in accordance with our requirements. If you sign a Multi-Unit Development Agreement, you must find a suitable location for each additional location in time to meet the development schedule. We will approve each additional location under the Multi-Unit Development Agreement using our then-current site criteria. We will not reimburse you for any costs you incur for any location you submit to us for review and approval. (Clauses 4.7, 4.8 and 4.9 of the Franchise Agreement).
The time limit for us to approve or disapprove a proposed site is within 30 days of your submission. If we do not approve a proposed site, we will provide a written notice to you (i) specifying that approval is withheld, and (ii) setting out the reasons approval is withheld. If any additional information is requested by us for a proposed site, the 30 day-period will restart on the date of our receipt of any such additional information. (Clauses 4.7, 4.8 and 4.9 of the Franchise Agreement). If we cannot agree on a site, we may terminate your franchise agreement and your initial fee will be forfeited.
We may approve or disapprove a proposed site in our discretion. Factors affecting our approval generally include location, occupancy costs, proximity to major retail activity, traffic volume and speed, density of nearby population (resident or daytime), competition and potential for encroachment on other Chatime Stores, site configuration, parking, accessibility, visibility, signage permitted by the landlord and local governmental authorities, and other factors. (Clauses 4.7, 4.8 and 4.9 of the Franchise Agreement). You will not begin any construction on a site without our prior approval. (Clause 4.11 of the Franchise Agreement).
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 27–35)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the franchisee is responsible for selecting the site for their franchise location. Chatime will provide the franchisee with site selection criteria and designate a geographic area in which the franchisee must select the site. Chatime does not select the site itself.
Chatime will review the franchisee's site proposal and must approve the site, which the franchisee must develop according to Chatime's requirements. If the franchisee signs a Multi-Unit Development Agreement, they must find a suitable location for each additional location to meet the development schedule. Chatime will approve each additional location using its then-current site criteria. The franchisee will not be reimbursed for any costs incurred for any location submitted for review and approval.
Chatime has 30 days to approve or disapprove a proposed site from the date of submission. If Chatime does not approve a site, it will provide written notice specifying the reasons for disapproval. If additional information is requested, the 30-day period restarts upon receipt of the additional information. If Chatime and the franchisee cannot agree on a site, Chatime may terminate the franchise agreement, and the initial fee will be forfeited. Chatime may approve or disapprove a proposed site at its discretion, considering factors such as location, occupancy costs, proximity to retail activity, traffic volume, population density, competition, site configuration, parking, accessibility, visibility, and signage.