Chatime charges a royalty fee of 5.0% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.

The total ongoing fee rate for a Chatime franchise is approximately 7.0% of gross sales (2025 FDD). This includes the royalty fee, a 2.0% marketing/advertising fund contribution, a $750/month technology fee, and other recurring charges.

Chatime has been involved in 2 litigation cases over the past 3 years (2025 FDD). There are no class action lawsuits pending.

No, the Chatime franchisor has no bankruptcy filings in their disclosure history (2025 FDD).

Chatime offers exclusive territory rights to its franchisees (2025 FDD). The franchise agreement includes encroachment protection, preventing the franchisor from placing another unit in your territory. Online sales are managed by the franchisor, not individual franchisees.

Chatime currently operates 19 locations (2025 FDD) (16 franchised, 3 company-owned). The system grew by 46.1% over the past year. The 3-year compound annual growth rate is 16.6%.

The 1-year franchisee turnover rate for Chatime is 0.0% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.

According to the Chatime FDD Item 19 financial performance representation (2025 FDD), the median gross sales per unit is $244K (average: $370K).

The initial franchise agreement term for Chatime is 10 years (2025 FDD). Franchisees can renew 1 time for 10-year periods. The total potential term is 20 years.

Chatime's post-termination non-compete clause restricts former franchisees from operating a competing business for 2 years within 25 miles of the former location (2025 FDD).

Yes, Chatime's franchise agreement requires mandatory arbitration for dispute resolution (2025 FDD). The agreement includes a jury trial waiver.

Chatime provides 58 hours of initial training over approximately 2 weeks (2025 FDD). Ongoing field support is provided on a annual basis.

Yes, Chatime provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.