What is the total number of Chatime outlets that ceased operations for other reasons across all states in 2022?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
2 | 0 | | | 2023 | 0 | | | 2024 | 2 | | All States | 2022 | 0 | | | 2023 | 0 | | | 2024 | 2 | | 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 |
Source: Item 20 — Outlets and Franchisee Information (FDD pages 53–58)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, across all states in 2022, a total of 6 outlets ceased operations for reasons other than terminations, non-renewals, or reacquisition by the franchisor. Specifically, California had 2 outlets close for other reasons, while Guam had 1, and Ohio had 1, and Washington had 1.
This information is crucial for potential franchisees as it offers insight into the stability and potential risks associated with owning a Chatime franchise. Understanding why outlets might close for 'other reasons' can help a franchisee assess the various factors that could impact their investment and operational success. These reasons could range from economic downturns in specific locations to issues with local management or unforeseen circumstances affecting business viability.
Prospective franchisees should investigate what constitutes 'other reasons' for closures with Chatime to gain a clearer understanding. This could involve speaking with current and former franchisees to gather anecdotal evidence and insights into the challenges they have faced. Additionally, it would be prudent to evaluate the locations where these closures occurred to identify any common factors or patterns that may indicate potential risks associated with certain markets or operational strategies.