Besides normal business hours, when else can Chatime inspect the premises of any Outlet?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Franchisor may, at any time, during normal Business Hours and one hour before and one hour after normal Business Hours, inspect the premises of the Outlet for the purpose of:
- (a) Monitoring compliance by Franchisee of its obligations under this Agreement; and
- (b) Ensuring compliance by Franchisee of its financial obligations under this Agreement and for the purpose of verifying any financial information provided by Franchisee to Franchisor.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Chatime has the right to inspect the premises of any Outlet not only during normal business hours, but also one hour before and one hour after normal business hours.
Chatime can conduct these inspections to monitor the franchisee's compliance with their operational obligations as outlined in the franchise agreement. This ensures that franchisees are adhering to Chatime's standards and procedures for running the business.
These inspections also allow Chatime to ensure the franchisee is meeting their financial obligations under the agreement and to verify any financial information that the franchisee has provided to Chatime. This helps Chatime maintain accurate financial records and ensures that franchisees are fulfilling their financial responsibilities.
This clause in the FDD highlights the importance of franchisees maintaining compliance with both operational and financial requirements, as Chatime has the right to inspect the premises outside of normal business hours to ensure these obligations are being met.