factual

How is the Brand Marketing Fee determined for a Chatime franchise?

Chatime Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee must pay the Brand Marketing Fee to Franchisor on the tenth day of each Month. The Brand Marketing Fee will be determined based on the Gross Sales of the Outlet for the previous Month.

Source: Item 23 — Receipts (FDD pages 58–262)

What This Means (2025 FDD)

According to Chatime's 2025 Franchise Disclosure Document, the Brand Marketing Fee is determined based on the Gross Sales of the Outlet for the previous month. Franchisees are required to pay this fee to Chatime on the tenth day of each month.

Chatime has sole discretion over how the Brand Marketing Fee is used. These uses can include developing advertising campaigns, engaging marketing agencies, providing franchisees with marketing materials, and coordinating marketing activities. The funds may be used for developing the Chatime brand internationally, regionally, or within the franchisee's specific territory.

Chatime may combine the Brand Marketing Fees collected from multiple franchisees. However, the FDD states that there is no guarantee that a franchisee's Brand Marketing Fee will be spent specifically in their territory or region. The Brand Marketing Fund is not a trust fund.

If a Chatime franchisee requires additional marketing assistance beyond what is covered by the standard Brand Marketing Fee, they will be responsible for paying additional fees and charges invoiced by Chatime for such services. All marketing and promotional materials used by the franchisee must receive prior written approval from Chatime.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.