What was the total number of Chatime franchise agreements terminated in 2023?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
| State | Yea r | Outlets at Start or the Year | Outlets Opened | Termina- tions | Non- Renewals | Reacquired by Franchisor | Ceased Operation s – Other Reasons | Outlet s at End of the Year |
|---|---|---|---|---|---|---|---|---|
| AL | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| 2024 | 0 | 1 | 0 | 0 | 0 | 0 | 1 | |
| CA | 2022 | 3 | 0 | 0 | 0 | 0 | 2 | 1 |
| 2023 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | |
| 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| FL | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 | |
| 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 | |
| GA* | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 | |
| 2024 | 1 | 0 | 0 | 1 | 0 | 0 | 0 | |
| GU** | 2022 | 5 | 0 | 0 | 0 | 0 | 1 | 4 |
| 2023 | 4 | 0 | 0 | 0 | 0 | 0 | 4 | |
| 2024 | 4 | 0 | 0 | 0 | 0 | 0 | 4 | |
| KS | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 | |
| 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 | |
| MD | 2022 | 3 | 3 | 0 | 0 | 0 | 0 | 6 |
| 2023 | 6 | 0 | 0 | 0 | 0 | 2 | 4 | |
| 2024 | 4 | 0 | 0 | 0 | 0 | 0 | 4 | |
| State | Yea r | Outlet s at Start or the Year |
Source: Item 20 — Outlets and Franchisee Information (FDD pages 53–58)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, there were zero terminations of franchise agreements in 2023. This data is derived from Table 3, which outlines the status of franchise outlets from 2022 to 2024. Specifically, the table provides a breakdown of outlets that experienced terminations, non-renewals, re acquisitions by the franchisor, and those that ceased operations for other reasons.
The absence of any terminations in 2023 could be interpreted positively, suggesting stability within the Chatime franchise system. However, it is important to consider this information in conjunction with other factors, such as the number of new outlets opened, transfers, and overall changes in outlet numbers. A prospective franchisee should investigate further to understand the reasons behind these figures and whether they reflect a healthy and growing franchise system.
While zero terminations may seem encouraging, potential franchisees should also look at the 'Ceased Operations – Other Reasons' column, which indicates that 3 outlets ceased operations for other reasons in 2023. This suggests that while franchise agreements were not formally terminated, some outlets still closed. Understanding the reasons behind these closures is crucial for assessing the overall health and stability of a Chatime franchise.