How does Chatime define an 'Approved Supplier'?

According to Chatime's 2025 Franchise Disclosure Document, an Approved Supplier is defined as the Franchisor or a supplier or suppliers approved in writing by the Franchisor for the supply of products and equipment to the franchisee.

This definition is important for prospective franchisees because it dictates where they are allowed to source their supplies. Franchisees are generally required to purchase raw materials and other products from these Approved Suppliers. This ensures consistency and quality control across all Chatime locations, maintaining brand standards.

Chatime retains the right to modify the list of Approved Suppliers. This means that while a supplier may be approved initially, Chatime can revoke this approval at any time. Franchisees need to stay informed about the current list of Approved Suppliers to ensure compliance. Franchisees are responsible for establishing and maintaining supply arrangements on competitive terms and conditions for products, shop-fitting, signage and equipment. These suppliers are subject to Chatime's prior written approval, and Chatime may require suppliers to allow inspection of their facilities to ensure they meet the brand's quality and standards.

Unless otherwise provided in writing by Chatime, franchisees must purchase all raw materials from Chatime on the then-current Terms of Trade. Otherwise, franchisees must purchase all Raw Materials from suppliers approved by Chatime in writing. Chatime or its Affiliates may receive payments from Approved Suppliers on account of such suppliers' dealings with Franchisee and may use all amounts so received without restriction and for any purpose Chatime or its Affiliates deem appropriate (unless Chatime or its Affiliates agree otherwise with the supplier).