When is the Brand Marketing Fee due for a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Brand Marketing Fee. You will pay us 2.0% of Gross Sales of your Chatime Store
on the tenth day of each month based on the Gross Sales for the previous month (the "Brand Marketing Fee"). In our discretion, we may use the Brand Marketing Fee to pay the costs of (i) developing and conducting international or regional advertising and promotional campaigns including advertising in international or regional publications, (ii) engaging advertising agencies and marketing and research consultants, (iii) providing you with samples of brochures and marketing materials used by us or our affiliates for amendment and use by you in your Territory, (iv) coordinating and administering the activities described in (i) to (iii) including reasonable overhead, administrative, and employee expenses, (v) materials and printing, and (vi) any other marketing activity for the purpose of developing the Chatime brand internationally, regionally, or in your Territory.
We may combine the Brand Marketing Fee with other marketing fees provided by other franchisees. If you request any additional marketing assistance that is not within the scope of assistance provided for by the Brand Marketing Fee, then you will pay any additional fees we charge for such additional marketing assistance upon demand. You will not use any marketing or promotional materials unless such marketing or promotional materials have been first approved in writing by us.
Source: Item 6 — Other Fees (FDD pages 13–17)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the Brand Marketing Fee is due on the tenth day of each month. This fee is calculated as 2.0% of the Gross Sales from the previous month at the Chatime store. Gross sales include the total charges for all products and services sold, whether for cash or credit, excluding sales taxes collected and customer refunds or discounts.
Chatime may use the Brand Marketing Fee for various marketing activities. These include developing advertising campaigns, engaging marketing agencies, providing marketing materials to franchisees, and coordinating marketing activities. The fee can also cover overhead, administrative, and employee expenses related to these marketing efforts. Additionally, the funds may be used for materials, printing, and any other marketing activity aimed at developing the Chatime brand internationally, regionally, or within the franchisee's territory.
It's important to note that Chatime has the discretion to combine the Brand Marketing Fee with marketing fees from other franchisees. If a franchisee requires additional marketing assistance beyond what the Brand Marketing Fee covers, they will be responsible for paying additional fees upon demand. Furthermore, franchisees must obtain written approval from Chatime before using any marketing or promotional materials.