factual

How does Chatime define an 'Approved Supplier' for Products and equipment?

Chatime Franchise · 2025 FDD

Answer from 2025 FDD Document

1 Definitions and Interpretation

1.1 Definitions

The following words have these meanings in this Agreement unless the contrary intention appears:

  • (5) Approved Supplier means Franchisor or a supplier or suppliers approved in writing by Franchisor for the supply of Products and equipment to Developer and/or Franchisees.

Source: Item 23 — Receipts (FDD pages 58–262)

What This Means (2025 FDD)

According to Chatime's 2025 Franchise Disclosure Document, an Approved Supplier is defined as Chatime itself, or any supplier that Chatime has approved in writing to provide products and equipment to developers and/or franchisees. This definition is crucial because franchisees are generally required to purchase raw materials and other products exclusively from these Approved Suppliers.

Chatime retains the right to modify the list of Approved Suppliers at any time, and approval may be conditional upon the supplier meeting Chatime's quality and standards requirements. Chatime may also require access to inspect a potential supplier's facilities to ensure they meet the brand's criteria. This ensures that all products and equipment used in Chatime locations meet the franchisor's standards for quality and consistency.

For a prospective Chatime franchisee, this means limited autonomy in sourcing supplies. While franchisees can request approval for new suppliers, the process involves providing samples, detailed documentation, and access to the supplier's facilities for inspection. Additionally, the franchisee is responsible for covering all costs associated with Chatime's evaluation of the proposed supplier. This process ensures quality control but may also add expenses and reduce the franchisee's flexibility in choosing suppliers.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.