As of what date must a Chatime franchise be operating to be included in the Net Sales information for 2024?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
This Item 19 shows the historic Net Sales information for calendar year 2024 for the Chatime franchise locations operating within the United States of America which have been operating more than 12 months in their current location and were operating as of December 31, 2024 under agreement with Chatime Franchise LLC.
Net Sales means all revenue from the sale of all products and sources, derived from, or originating from the relevant Chatime store. This includes online sales fulfilled from the location. Net sales
includes transactions, whether for cash, check, or credit, and regardless of collection in the case of check or credit, less any customer refunds, staff tips and/or sales taxes collected from customers and actually transmitted to the appropriate taxing authorities.
Net Sales information included in this Item 19 and the table below is obtained from store point-ofsale (POS) reports and other materials submitted by the retail locations and franchisee. Neither we, any of our affiliates nor an independent certified public accountant has independently audited or verified the information.
Source: Item 19 — Financial Performance Representations (FDD pages 52–53)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, to be included in the 2024 Net Sales information, a Chatime franchise location must have been operating for more than 12 months in its current location and operating as of December 31, 2024, under agreement with Chatime Franchise LLC. This means that a franchise included in the 2024 Net Sales figures needed to be open and running before December 31, 2023, to meet the 'more than 12 months' requirement.
This requirement ensures that the sales data presented is representative of an established business rather than a newly opened one that may still be ramping up. The Net Sales figures represent the revenue from all product sales and sources at the Chatime store, including online sales fulfilled from that location. This includes transactions made via cash, check, or credit, minus customer refunds, staff tips, and sales taxes collected and remitted to the appropriate authorities.
Prospective franchisees should understand that the financial performance representations are based on data submitted by existing locations and franchisees. While this information can be helpful in estimating potential revenue, Chatime states that neither they, their affiliates, nor an independent certified public accountant has independently audited or verified the information. Therefore, franchisees should conduct their own due diligence and possibly consult with a financial advisor to assess the reliability and applicability of this data to their specific circumstances and location.
The FDD also cautions against relying on any financial performance representations made outside of Item 19, unless provided as actual records for an existing outlet being considered for purchase. Any unauthorized financial projections should be reported to Chatime's management, the Federal Trade Commission, and relevant state regulatory agencies. This is a standard practice in franchising to protect potential franchisees from misleading or unsubstantiated claims.