Can Chatime combine the Brand Marketing Fee with other marketing fees from other franchisees?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Chatime has the right to combine the Brand Marketing Fee with other marketing fees collected from other franchisees. This means that the 2.0% of gross sales that each Chatime franchisee contributes to the Brand Marketing Fee can be pooled together with contributions from other franchisees to fund larger-scale marketing initiatives.
This arrangement benefits franchisees by allowing Chatime to undertake more impactful international or regional advertising and promotional campaigns than any single franchisee could afford on their own. These campaigns aim to develop the Chatime brand internationally, regionally, or within a specific franchisee's territory. The Brand Marketing Fee can cover various costs, including engaging advertising agencies, marketing consultants, providing marketing materials, and covering administrative expenses related to these activities.
However, franchisees should be aware that if they require additional marketing assistance beyond what the Brand Marketing Fee covers, they will be responsible for paying additional fees. Franchisees are also restricted from using any marketing or promotional materials that have not been pre-approved in writing by Chatime, ensuring brand consistency and quality control across all locations.