In the Chatime agreement, what currency are payments to the Franchisor made in, unless otherwise specified?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
6.8 Currency of Payment
- (1) All payments by Franchisee to Franchisor under this Agreement will be made in U.S. Dollars unless otherwise specified by Franchisor.
- (2) All payments in this Agreement are to be calculated in the currency of the Territory and converted into Dollars for payment to Franchisor and must be converted at a rate equivalent to the measurement notified by Franchisor on the date the payment is due. However, in the event a payment is remitted after the date payment is due, the currency exchange rate used will be the rate as of:
- (a) The date the payment was due; or
- (b) The date the payment is remitted,
whichever rate is the greater.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, all payments made by a franchisee to Chatime under the Franchise Agreement must be in U.S. Dollars, unless Chatime specifies otherwise. However, all payments are calculated in the currency of the territory where the Chatime franchise is located and then converted into U.S. Dollars for payment to Chatime. The currency exchange rate used for this conversion is the rate that Chatime notifies the franchisee of on the date the payment is due.
If a franchisee remits a payment after its due date, the currency exchange rate used will be the greater of either the rate on the original due date or the rate on the date the payment is actually remitted. This condition protects Chatime from currency fluctuations if a payment is late.
All payments from the franchisee to Chatime must be made in full, without any deductions for bank charges. Payments are to be made by direct deposit into Chatime's bank account, as specified in Schedule 1, Section 7, or through another method Chatime specifies in writing, including direct debit. The franchisee is required to complete any necessary forms to facilitate payments via direct debit or other electronic methods.