What is the timeframe that Chatime Franchisor has to respond to a Developer's proposed Revised Development Schedule?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
During the 3-Month period following Franchisor's receipt of the Revised Development Schedule, Franchisor will either notify Developer in writing that the Revised Development Schedule is acceptable or will attempt to negotiate a Revised Development Schedule that is mutually agreeable to Franchisor and Developer. The parties will negotiate any Revised Development Schedule in good faith and act reasonably in all negotiations.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, if a developer intends to exercise their option for a new term, they must submit a proposed development schedule to Chatime. Following receipt of this schedule, Chatime has a 3-month period to respond in writing, either accepting the proposed schedule or initiating negotiations for a mutually agreeable revision.
This 3-month window is significant for prospective developers as it sets the timeline for securing development plans for the new term. It ensures that Chatime will review and respond to the proposed schedule within a defined timeframe, allowing the developer to plan accordingly. The FDD specifies that both parties are expected to negotiate in good faith and act reasonably during this process.
It's important to note that the option for a new term is contingent upon several conditions, including the developer's compliance with the existing agreement and the absence of unresolved breaches. Therefore, developers need to maintain good standing with Chatime to ensure their eligibility for a new term and a smooth negotiation process for the revised development schedule.