Besides La Kaffa and Chatime Wholesale LLC, does Chatime have any other approved suppliers in which any of its officers own an interest?

According to Chatime's 2025 Franchise Disclosure Document, besides La Kaffa and Chatime Wholesale LLC, there are no other approved suppliers in which any of Chatime's officers own an interest. However, officers of the franchisor do have an indirect ownership interest in La Kaffa and Chatime Wholesale LLC.

As a Chatime franchisee, you are required to purchase or lease all products, ingredients, goods, supplies, equipment, inventory, insurance, payroll service, real estate and project management services, and accounting services from Chatime or one of its approved suppliers, which may include its affiliates. Chatime estimates that required purchases from approved suppliers will represent approximately 85% of the total purchases for establishing and operating a Chatime store.

It is important to note that Chatime and its affiliates may derive revenue from franchisee purchases of products and services. In 2024, Chatime's affiliates had revenue of $396,652.37 from required purchases and leases of products and services by franchisees. This arrangement is common in franchising, where franchisors often receive revenue from suppliers based on franchisee purchases.

Prospective franchisees should be aware that Chatime may receive promotional allowances, volume discounts, commissions, rebates, and other payments from suppliers and vendors. These commissions, rebates, or fees may cause the price for such products or services to be higher than market value. Therefore, it is crucial to carefully evaluate the costs and benefits of purchasing from approved suppliers.