What is the time limit for Chatime to approve or disapprove a proposed site?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Chatime has 30 days to approve or disapprove a proposed site after the franchisee submits it. If Chatime does not approve the site, they will provide written notice stating that approval is withheld and the reasons for the decision.
If Chatime requests additional information about the proposed site, the 30-day period restarts from the date they receive the additional information. This means the approval process could potentially extend beyond the initial 30 days if Chatime requires more details to make an informed decision.
If Chatime and the franchisee cannot agree on a site, Chatime has the right to terminate the franchise agreement, which would result in the franchisee forfeiting their initial fee. This highlights the importance of selecting a site that meets Chatime's criteria and the potential financial risk if a suitable location cannot be found. Chatime may approve or disapprove a proposed site in their discretion, and factors affecting their 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.
This clause underscores the importance of thorough due diligence and communication between the franchisee and Chatime during the site selection process. Franchisees should ensure they understand Chatime's site selection criteria and provide all necessary information to facilitate a timely and positive decision.