What is the deadline for Chatime to approve or disapprove local advertising materials submitted by a franchisee?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
We require you to spend at least 2.0% of Gross Sales on local marketing ("Local Marketing Expenditure"). You will spend the Local Marketing Expenditure on advertising for your Chatime Store in your local defined territory. The Local Marketing Expenditure is paid to third parties. You may use your own local advertising materials including, without limitation, directory advertising, newspaper ads, digital including social channels, flyers, brochures, coupons, direct mail pieces, specialty and novelty items, and radio and television advertising; provided, however, that you follow our brand guidelines and obtain our prior written approval of all proposed advertising materials at your expense. We will endeavour to approve or disapprove the advertising materials within 10 days after we receive it from you. You are not required to participate in a local or regional advertising cooperative. (Clause 7.1 of the Franchise Agreement).
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 27–35)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, franchisees are required to spend at least 2.0% of gross sales on local marketing. Franchisees have the option to create their own local advertising materials, which can include directory advertising, newspaper ads, digital channels, flyers, brochures, coupons, direct mail, and radio and television advertising. However, these materials must adhere to Chatime's brand guidelines and receive prior written approval from Chatime.
Chatime aims to review and respond to the submitted advertising materials within 10 days of receipt. This means a franchisee can expect to hear back from Chatime regarding their local advertising materials in a timely manner.
It is important to note that franchisees bear the expense of creating these local advertising materials and obtaining Chatime's approval. While Chatime endeavors to provide a response within 10 days, there is no guarantee, and delays could potentially impact a franchisee's marketing plans. Franchisees are not required to participate in a local or regional advertising cooperative.