Can the terms and conditions of the Franchise Agreement for subsequent Chatime outlets differ from my original Franchise Agreement?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
he previous location or to align with the new lease term being no
greater than 10 years on the new location, at a pro rata fee of the initial Franchise Fee entered into. The then-current Franchise Agreement may contain materially different terms and conditions than your original Franchise Agreement. There is no additional Initial Franchise Fee paid to us for relocation unless we grant you a term greater than the term remaining on the Franchise Agreement for the previous location.
Regardless of either proximity to your Territory, or your Chatime Store, or any actual or threatened impact on sales of your franchise business, we may (i) use the Trademarks and System in connection with establishing and operating Chatime Stores at any location outside your Territory, (ii) use the Trademarks or other marks in connection with selling or distributing any goods or services anywhere in the world through alternative channels of distribution such as the Internet or other electronic communications, telephone, mail, or similar channels regardless of the destination of the product
Source: Item 12 — Territory (FDD pages 35–38)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the terms and conditions of the Franchise Agreement for subsequent Chatime outlets can indeed differ from your original agreement. Specifically, if you are granted a term greater than 10 years on a new location, the then-current Franchise Agreement may contain materially different terms and conditions than your original Franchise Agreement. Similarly, for each additional Chatime location under a Multi-Unit Development Agreement, you must sign the then-current form of the Franchise Agreement, which may also have materially different terms and conditions compared to your initial agreement.
This means that as a prospective Chatime franchisee, you should be aware that the terms under which you operate your first store might not be the same for any subsequent locations. This could affect various aspects of your business, such as fees, operational requirements, and other obligations. It is crucial to carefully review the then-current Franchise Agreement for each new location to understand any changes and their potential impact on your investment and operations.
This practice is not uncommon in franchising, as franchisors often update their agreements to reflect changes in the market, legal requirements, or their business model. However, it does place a responsibility on the franchisee to stay informed and adapt to new terms as they expand their business. Before signing any agreement for additional Chatime locations, you should seek legal counsel to fully understand the implications of any changes in the Franchise Agreement.