According to the Chatime Franchise Agreement, what are the three parties involved?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Chatime Franchise LLC (the "Company") was formed on July 12, 2022, as a wholly-owned subsidiary of Chatime Global LLC (the "Member"), as a Delaware limited liability company to sell franchises pursuant to a license agreement dated September 23, 2022, between the Company's sole member, Chatime Global LLC, and its subsidiaries ("Licensee Parties") and La Kaffa International Co., Ltd. (the "Licensor"). The Licensor has 100% ownership interest in Chatime Northstar which has 50% ownership interest of the Member. Pursuant to the Company's standard franchise agreement, franchisees will operate a Chatime food service offering gourmet coffees and teas, other coffee and tea-based beverages, bubble tea, compatible food products, coffee and tea makers, and related supplies, accessories, and gifts at a specified location within a designated geographic territory.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, the three parties involved in the standard franchise agreement are Chatime Franchise LLC (the Company), Chatime Global LLC (the Member), and La Kaffa International Co., Ltd. (the Licensor). Chatime Franchise LLC was formed as a wholly-owned subsidiary of Chatime Global LLC to sell franchises, operating under a license agreement with La Kaffa International Co., Ltd. This agreement grants Chatime Franchise LLC the right to offer Chatime franchises.
Chatime Franchise LLC, as the company offering the franchises, is responsible for ensuring franchisees operate according to the franchise agreement. Chatime Global LLC, as the sole member, is generally not liable for the debts and obligations of Chatime Franchise LLC unless a specific guarantee has been signed. La Kaffa International Co., Ltd., as the licensor, retains ownership of the Chatime brand and intellectual property, receiving royalties from Chatime Franchise LLC based on franchise outlet gross sales.
Prospective franchisees should understand the relationships between these three entities, as it clarifies the roles and responsibilities in the Chatime franchise system. The financial stability and ongoing support from both Chatime Global LLC and La Kaffa International Co., Ltd. are crucial for the success of the Chatime franchise network. Understanding the obligations and rights of each party can help a franchisee assess the overall risk and potential rewards of investing in a Chatime franchise.