What is the total estimated initial investment range for a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of | When Due | To Whom |
|---|---|---|---|---|
| Payment | Payment is to be Made | |||
| Multi-Unit Development Fee for three to ten locations | $134,900 to $274,900 | Lump Sum | At signing of Multi-Unit Development Agreement | Us |
| Estimated Initial Investment to Open Initial Chatime Store | $238,200 to $425,000 | This is the total estimated initial investment for a single Chatime Store in Table A above (not including the initial franchise fee which is covered by the multi-unit development fee). | ||
| --- | --- | --- | ||
| Total | $373,100 to $699,900 | |||
| Estimated | ||||
| Initial | ||||
| Investment for | ||||
| a three to ten | ||||
| location Multi- | ||||
| Unit | ||||
| Development | ||||
| Agreement |
- The total initial investment for a multi-unit development agreement for three to ten locations is $373,100 to $699,900.
The low-end figure of $373,100 is the low-end estimated initial investment for a multi-unit development agreement for three locations. This figure includes the Multi-Unit Development Fee for three locations, namely $134,900, plus the low-end estimated initial investment for the first location, namely $238,200 (calculated based on the expenses listed in Item 7 not including the Initial Franchise Fee which is not included because the Multi-Unit Development Fee serves as full credit against the initial franchise fees for each location including the first location).
The high-end figure of $699,900 is the high-end estimated initial investment for a multi-unit development agreement for ten locations. This figure includes the Multi-Unit Development Fee for ten locations, namely $274,900 plus the high-end estimated initial investment for the first location, namely $425,000 (calculated based on the expenses listed in Item 7 not including the Initial Franchise Fee which is not included because the Multi-Unit Development Fee serves as full credit against the initial franchise fees for each location including the first location).
| Estimated Amount | |
|---|---|
| Type of Expenditure | |
| Range | |
| Initial Franchise Fee(1) | $54,900 |
| Initial Training, Opening | $5,000 |
| Rent(3) | $6,000 to $33,000 |
| Lease Security Deposit (3) | $4,000 to $22,000 |
| Storage Space Deposit(3) | $0 to $1500 |
| Leasehold Improvements (4) | $135,000 to $226,000 |
| Equipment (5) | $33,500 to $46000 |
| External Signage | $4,200 to $9,500 |
| Opening Inventory and | $10,000 to $16,000 |
| Supplies(6) | |
| Grand opening marketing(7) | $10,000 |
| Licenses, Permits, and | $3,500 to $5,500 |
| Utility Deposits(8) | |
| Technology Systems(9) | $10,500 to $14,000 |
| Uniforms | $500 to $1,500 |
| Insurance(10) | $3,000 to $6,000 |
| Professional Fees | $1,000 to $5,000 |
| Additional Funds – Three | $12,000 to $24,000 |
| Months(11) | |
| Total Estimated Initial | $ 293,100 to $479,900 |
| Investment |
Source: Item 7 — Estimated Initial Investment (FDD pages 17–22)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the estimated initial investment to open a single Chatime store ranges from $293,100 to $479,900. This includes expenses such as the initial franchise fee of $54,900, initial training and related personnel costs of $5,000, rent which ranges from $6,000 to $33,000, and lease security deposit which ranges from $4,000 to $22,000. Furthermore, storage space deposit ranges from $0 to $1,500, leasehold improvements range from $135,000 to $226,000, equipment ranges from $33,500 to $46,000, external signage ranges from $4,200 to $9,500, opening inventory and supplies range from $10,000 to $16,000, grand opening marketing is $10,000, licenses, permits, and utility deposits range from $3,500 to $5,500, technology systems range from $10,500 to $14,000, uniforms range from $500 to $1,500, insurance ranges from $3,000 to $6,000, professional fees range from $1,000 to $5,000, and additional funds for three months range from $12,000 to $24,000. These costs cover the initial phase of operating a Chatime store for approximately three months.
For a multi-unit development agreement covering three to ten locations, the total estimated initial investment ranges from $373,100 to $699,900. The low-end estimate of $373,100 accounts for a three-location agreement, including a $134,900 multi-unit development fee and $238,200 for the first location. The high-end estimate of $699,900 covers a ten-location agreement, with a $274,900 multi-unit development fee and $425,000 for the first location. The multi-unit development fee serves as a full credit against the initial franchise fee for each location.
Prospective franchisees should note that these are only estimates, and actual costs may vary depending on factors such as location, store size, and local market conditions. The FDD advises that cash flow from operations might not cover all operating costs during the initial business phase, and additional investment may be necessary. It is important to carefully review all components of the initial investment and consider potential variations based on individual circumstances.
Chatime recommends securing a commercial property of at least 300 square feet and suggests maintaining build-out and worker's compensation insurance. The FDD also specifies that the estimate for additional funds covers business expenses for the first three months, excluding owner salaries and non-store management expenses. Franchisees should conduct thorough due diligence and consult with financial advisors to prepare for the full scope of potential costs.