Under what condition is a Chatime Developer required to pay a Renewal Development Fee?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
5.2 Renewal Development Fee
Where Developer exercises its option to enter into a new development business agreement for the New Term in accordance with clause 2.7, Developer must pay to Franchisor the Renewal Development Fee in accordance with the then-current form of Multi-Unit Development Agreement.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a Developer is required to pay a Renewal Development Fee when they exercise their option to enter into a new development business agreement for a New Term, as outlined in clause 2.7 of the Multi-Unit Development Agreement. This fee must be paid in accordance with the terms specified in the then-current form of the Multi-Unit Development Agreement.
In simpler terms, if a Chatime Developer chooses to extend their development agreement for a new term, they will need to pay a Renewal Development Fee. The specific amount and payment terms for this fee will be determined by the Multi-Unit Development Agreement that is in effect at the time of the renewal.
This condition is important for prospective Chatime developers to consider, as it represents a significant cost associated with extending their development rights. Developers should carefully review the terms of the then-current Multi-Unit Development Agreement to understand the financial implications of renewing their agreement. It is also important to note that the developer must exercise their option to enter into a new agreement to be required to pay the renewal fee.