Is the Brand Marketing Fee paid by Chatime franchisees calculated before or after other deductions?

According to Chatime's 2025 Franchise Disclosure Document, the Brand Marketing Fee is calculated based on the Gross Sales of the Outlet for the previous month. Gross sales are revenues before any deductions.

This means that the Brand Marketing Fee is determined before any deductions such as costs of goods sold, operating expenses, or any other expenses a Chatime franchisee might incur. The franchisee pays the Brand Marketing Fee on the tenth day of each month.

It is important for prospective franchisees to understand that this fee is based on total revenue and not profit. This can impact the franchisee's profitability, especially during periods of high revenue but also high expenses. Franchisees should factor this into their financial projections and business planning.