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№ 01Buying & Selling a Business · Franchise Resale · Ontario

Buying a Chatime franchise

Chatime's Ontario locations run as beverage-only kiosks and small-format storefronts — no exhaust hood, no cooking line — which keeps the physical build-out lighter than a typical quick-service resale. What matters more here is the ingredient side: tea concentrate, toppings, and syrups usually come from an approved supplier list the franchisor controls, and confirming that relationship carries over is as important as the lease itself.

№ 01.1The Resale, End to End

From offer to ownership

Chatime resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.

Getting approved

01

Conditional offer & supplier review

Price and terms, conditioned on franchisor consent, an assignable premises agreement, and confirming the approved-ingredient supply relationship is transferable.

1–2 weeks
02

Franchisor application & consent

Chatime's franchise team reviews the incoming buyer and can exercise its right of first refusal instead of letting the resale proceed as negotiated.

several weeks, typically
03

Disclosure considerations

A franchise disclosure document may still be required for this resale — Ontario courts read the resale-disclosure exemption narrowly, so franchisor involvement in the sale can trigger it even where it's called a private deal.

assessed early

Getting to closing

04

Premises assignment

A mall, plaza, or street-front premises agreement needs the landlord's written consent to assign, timed alongside the franchisor's own review.

2–6 weeks
05

Recipe training & transfer approval

The incoming owner typically completes Chatime's drink-preparation and recipe training before the transfer is finalized.

before or shortly after closing
06

Closing

Funds, keys, and signed documents change hands, alongside a count of perishable tea, dairy, and topping inventory.

1 day, once conditions are met
Timelines vary by franchisor approval speedWe track every deadline so nothing lapses.
№ 01.2About the System

About the Chatime system

CFA Look For A Franchise listing confirms Chatime as a CFA member since 2020, in business in Canada since 2011, and a CFA Franchisees' Choice Award winner in 2022

Chatime locations across Ontario and British Columbia combined, within a large global store network

№ 01.3Deal Structure

Asset sale or share sale?

This is the first real decision in a Chatime resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.

QuestionAsset purchaseShare purchase
What you buyThe kiosk's brewing and sealing equipment, refrigeration, leasehold improvements, inventory, and the benefit of the existing franchise agreement, subject to consent.The shares of the operating company — every location it holds, and everything it owes.
Seller's liabilitiesGenerally stay behind with the seller's existing corporation.Generally come with the company, including obligations tied to any other locations it operates.
Franchisor consent & ROFRRequired for this specific unit, and typically the pacing condition on the deal.Required for the change of control itself — the franchisor reviews who is actually taking over.
Approved-supplier relationshipContinued access to the franchisor's approved tea, dairy, and topping suppliers doesn't transfer automatically — it's confirmed as part of the consent process.The operating company's existing supply accounts generally carry over with the shares.
The premisesNeeds the landlord's consent to assign, timed alongside the franchisor's own review.Usually stays in place unless the agreement carries its own change-of-control clause.
Tax angleBuyer gets a stepped-up cost base on the assets purchased.Seller may access the lifetime capital gains exemption on qualifying shares.
What you buy
Asset sale

The kiosk's brewing and sealing equipment, refrigeration, leasehold improvements, inventory, and the benefit of the existing franchise agreement, subject to consent.

Seller's liabilities
Asset sale

Generally stay behind with the seller's existing corporation.

Franchisor consent & ROFR
Asset sale

Required for this specific unit, and typically the pacing condition on the deal.

Approved-supplier relationship
Asset sale

Continued access to the franchisor's approved tea, dairy, and topping suppliers doesn't transfer automatically — it's confirmed as part of the consent process.

The premises
Asset sale

Needs the landlord's consent to assign, timed alongside the franchisor's own review.

Tax angle
Asset sale

Buyer gets a stepped-up cost base on the assets purchased.

We tell you which structure fits — before you sign anything.

№ 01.5Costs & Fees

You'll know the number before we start

No open-ended hourly surprises — the cost is confirmed in writing before any work begins.

Type of workFeeHow it's confirmed
Straightforward purchase or saleStarting from $3,388.87
Our charges · taxes included
Confirmed in writing once we see the agreement.
Larger or more complex dealQuoted to scopeShort call → fixed written quote before any work begins.
Searches, filings & third-party feesAt costItemized on your invoice, not marked up.
Franchisor transfer/application fees, landlord consent costs, and a broker's success fee if the deal was listed — all confirmed once we see your agreement.
Most deals start here

An owner-run business

A single Chatime kiosk or storefront changing hands between one buyer and one seller, with a standard premises agreement and a straightforward franchisor consent process.

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A bit more involved

A larger or more complex deal

Confirming approved-supplier continuity before closing, or an existing operator adding a second Chatime location to their portfolio.

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Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.

№ 01.6Before You Ask

Common questions

Does the tea and topping supply relationship transfer automatically with the sale?

Not automatically — it's typically confirmed as part of the franchisor's consent process. We make sure written confirmation of continued supplier access is in hand before you're relying on it, rather than assuming it follows the lease.

Is a beverage-only kiosk lease different from a full-kitchen quick-service lease?

Generally simpler — without an exhaust hood or cooking line, the landlord's consent process tends to focus on plumbing, electrical load, and signage rather than the ventilation and grease-trap questions a full kitchen brings.

Does buying an existing Chatime location mean I skip the franchise disclosure document?

Not necessarily. Ontario courts have read the resale-disclosure exemption narrowly, and franchisor involvement in matching buyer to seller can still trigger a full disclosure requirement. We confirm whether it applies to your specific deal early.

I already own one Chatime location and want to add a second — does that change the structure?

Often, yes. Adding a second unit under an existing operating company is more commonly handled as an asset purchase into that company, with the franchisor reviewing your standing as an existing operator alongside the new location's consent.

What does Chatime's drink-preparation training actually cover?

Recipe consistency, equipment operation, and food-safety handling specific to tea and topping preparation — distinct from a general food-handler certificate, and typically required before or shortly after the transfer completes.

Related

Where we close franchise resale deals

Treadstone Law is an independent law firm. We act for buyers and sellers of franchise businesses. We are not affiliated with, endorsed by, or retained by Chatime or its franchisor.

Ready to begin?

Tell us about your Chatime resale — we'll point you the right way and confirm the cost in writing before any work begins.

Prefer to talk first? Call 1-844-900-1070 — it’s free.
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