When is the Additional Marketing Assistance Fee charged to a Chatime franchisee?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
| Uniforms for First | $500 to $1,500 | $500 to $1,500 | $500 to $1,500 |
|---|---|---|---|
| Location | |||
| Initial Training for First | $5,000 | $5,000 | $5,000 |
| Fee(1) Type of | Amount | Due Date | Remarks |
| Audit Fee | Cost of audit | As invoiced | Payable if (i) we find that you have understated any amount you owe to us by more than 2%, or (ii) you fail to furnish reports, supporting records, other information or financial statements as required on a timely basis and we believe an audit is necessary. The Audit Fee includes accountants' fees, legal fees, and associated travel and accommodation expenses for our employees. |
| Interest Rate | The lesser of 1.5% per month or the highest rate allowed by law | As invoiced | If you fail to pay us any amount when due, you will pay interest on that amount at the Interest Rate from the time the amount should have been paid until it is paid. Interest accrues daily and may be capitalized by us. |
| Alternate | Costs incurred | As invoiced | You will reimburse us for our costs to test |
| Supplier Testing | a proposed alternate supplier regardless of | ||
| Fee | whether such supplier is approved. | ||
| Temporary Management Fee | Commercially reasonable fee not less than $30 per hour plus costs of travelling, accommodation, meals, and other expenses for operating and managing the Store | As invoiced | If you cease to conduct operations or abandon your franchise business, we or our nominee may, but are not required to, enter your business premises and operate and manage your franchise business until you comply with our direction or notice requiring you to recommence operations. You will pay us a reasonable Temporary Management Fee we determine and our associated expenses including, without limitation, costs for employee wages and entitlements, travel, accommodations, and meals. |
| Taxes | Amount imposed by your state, local, and federal governments | As incurred | You will pay all applicable taxes. If any laws are changed, new laws are introduced or courts, or any relevant authority interprets laws differently so as to require us to pay a tax, duty, excise, or levy (impost) on amounts we receive from you (other than income tax) or on goods or services we supply, you will pay us an additional amount so that our net yield is unchanged. |
| Additional Marketing Assistance Fee | Current rates are $250 to $500 per person per day | As invoiced | If you request any additional marketing assistance from us that is not within the scope of assistance provided for by the Brand Marketing Fee, you will pay us any additional fees we charge for such |
Source: Item 6 — Other Fees (FDD pages 13–17)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the Additional Marketing Assistance Fee is charged when a franchisee requests marketing support beyond what is already covered by the Brand Marketing Fee. This fee, which ranges from $250 to $500 per person per day, is invoiced to the franchisee.
In practical terms, this means that while Chatime franchisees contribute 2.0% of their gross sales to the Brand Marketing Fee, which covers various marketing activities, any specific or additional marketing assistance requested will incur an extra charge. This could include personalized marketing campaigns or specialized promotional materials tailored to a franchisee's specific location or needs.
Franchisees should be aware of this additional cost and carefully consider whether the benefits of such additional marketing assistance justify the expense. It's important to discuss with Chatime what specific services are covered under the Brand Marketing Fee and what would trigger the Additional Marketing Assistance Fee to avoid unexpected costs. Understanding these details will help franchisees budget effectively and make informed decisions about their marketing strategies.