What costs may Chatime use the Brand Marketing Fee to cover?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
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, which is 2.0% of the store's gross sales, can be used to cover a variety of marketing-related expenses. This fee is paid by the franchisee to Chatime on the tenth day of each month, based on the previous month's gross sales.
Chatime has the discretion to use this Brand Marketing Fee for several purposes. These include developing and conducting international or regional advertising and promotional campaigns, which may involve advertising in international or regional publications. The fee can also be used to engage advertising agencies, marketing consultants, and research consultants to enhance the brand's marketing strategies.
Furthermore, Chatime may use the Brand Marketing Fee to provide franchisees with samples of brochures and marketing materials that can be adapted for use in their specific territories. The fee also covers the coordination and administration of these marketing activities, including reasonable overhead, administrative, and employee expenses. Other allowable costs include materials, printing, and any other marketing activity aimed at developing the Chatime brand internationally, regionally, or within the franchisee's territory. Chatime may also combine the Brand Marketing Fee with marketing fees collected from other franchisees to maximize the impact of marketing efforts.