By what day of the week must a Chatime developer report Gross Sales for each Outlet?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) In addition to the reports referred to in clause 4.1(1), Developer must deliver to Franchisor in the form periodically required by Franchisor, which may include in an electronic format, the following:
- (a) A notice of Outlet opening on or before the opening date of each Outlet, the lease agreement, if any, for the site where an Outlet is located, and the Franchise Agreement for such Outlet, including the serial number of such Outlet;
- (b) By the end of each Wednesday for each Outlet, a report of Gross Sales for the immediately preceding week;
- (c) By the tenth day of each Month for each Outlet, a report of the daily Gross Sales and a profit and loss account in the prior Month together with a report of the number, location and owner of Outlets opened, closed and under development during the immediately preceding Month;
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a developer must submit a report of Gross Sales for each outlet by the end of each Wednesday. This report pertains to the sales of the immediately preceding week. Gross Sales are defined as the total actual gross charges for all products, merchandise, and services sold to customers, whether the sales are made at the outlet or from another approved location. Excluded from gross sales are sales, use, service, or excise taxes collected from customers and paid to the appropriate taxing authority, as well as customer refunds, adjustments, and promotional discounts, including any senior citizens discount.
This weekly reporting requirement allows Chatime to monitor the financial performance of each outlet and calculate royalties or other fees based on sales. It also enables Chatime to track trends and identify potential issues early on. The developer's responsibility to accurately and promptly report Gross Sales is crucial for maintaining transparency and accountability within the Chatime franchise system.
For a prospective Chatime franchisee, this means implementing a system to accurately track and report sales data on a weekly basis. This may involve using a point-of-sale (POS) system that can generate the required reports automatically. Failing to submit the report by the specified deadline could result in penalties or other consequences as outlined in the franchise agreement. Therefore, it is essential to understand and comply with this reporting requirement to maintain a good standing with Chatime.
Furthermore, the report must be delivered to Chatime in the form periodically required by Chatime, which may include an electronic format. This highlights the importance of staying updated with Chatime's reporting requirements and adapting to any changes in the reporting format or method. A Chatime developer should clarify with the franchisor what specific format is expected for these reports.