What is the deadline for a Chatime franchisee to pay the Brand Marketing Fund Fee?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
You must contribute to our system-wide advertising and promotional fund called the Brand Marketing Fund by paying a fee of Two Percent (2 %) of your gross sales. You will pay the Brand Marketing Fund Fee to us on the tenth day of each month based on your Gross Sales for the previous month. (Clause 7.2 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 contribute to the Brand Marketing Fund, which is used for system-wide advertising and promotional efforts. This contribution is calculated as Two Percent (2 %) of the franchisee's gross sales.
The deadline for paying the Brand Marketing Fund Fee is the tenth day of each month. This payment is based on the franchisee's gross sales from the previous month. Therefore, a Chatime franchisee must calculate 2% of the previous month's gross sales and remit that amount to Chatime by the 10th of the current month.
It is important to note that these funds are used at Chatime's discretion for advertising, marketing, and promotional activities, and there is no guarantee that any portion of the fee will be allocated or spent specifically in the franchisee's territory or region. This is a common practice in franchising, where marketing funds are often used for broader, system-wide campaigns. Franchisees should be aware that while they contribute to the fund, they may not directly benefit from advertising in their specific area.