Are there any contractual limitations on the frequency or cost of required point-of-sale system or computer system upgrades for a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
iate terms with a third-party supplier that we approve. We may require you to upgrade or update any point-of-sale system or computer system to one we designate if we decide that such upgrade or update will be in the best interests of the brand and our franchise network. There are no contractual limitations on the frequency or cost of this obligation.
We may change the components of the technology stack from time to time in order to optimize in location operations and customer experience. We may require you to upgrade or update any point- of-sale system or computersystem to one we designate if we decide thatsuch upgrade or update will be in the best interests of the brand and our franchise network. There are no contractual limitations on the frequency or cost of this obligation.
Fees are payable for each element of the technology stack either to the designated supplier directly or to us if so designated.
We estimate the monthly license fees payable for the technology stack to range from $700 to $950.
The specific fee can vary further if you elect to utilize certain additional optional extras, features or touchpoints.
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, there are no contractual limitations regarding the frequency or cost of required point-of-sale (POS) system or computer system upgrades. Chatime may require franchisees to upgrade or update their POS or computer systems if Chatime decides it is in the best interest of the brand and franchise network.
Chatime may change the components of the technology stack to optimize location operations and customer experience. The franchisee is responsible for the payment of all initial and ongoing costs associated with the technology stack and any associated payment procedures specified by Chatime in the Operations Manual or Global Policies and Procedures. Monthly license fees for the technology stack are estimated to range from $700 to $950, and the cost of purchasing or leasing the systems is estimated to be $10,500 to $14,000.
This lack of contractual limitations means that Chatime has the flexibility to mandate upgrades as needed, but it also introduces uncertainty for franchisees. Franchisees should be prepared for potential unexpected costs associated with these upgrades. It is important for prospective franchisees to factor in potential future upgrade costs when evaluating the financial feasibility of a Chatime franchise. Franchisees should discuss with Chatime what factors would trigger an upgrade and if there is a history of upgrades with existing franchisees.