When must a Chatime developer deliver a notice of Outlet opening to the Franchisor?
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;
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a developer must provide a notice of Outlet opening to Chatime on or before the opening date of each Outlet. Additionally, the developer must also include the lease agreement, if any, for the site where the Outlet is located, and the Franchise Agreement for such Outlet, including the serial number of the Outlet.
This requirement ensures that Chatime is promptly informed about new Outlet openings within the development area. By mandating the notice be delivered on or before the opening date, Chatime can maintain accurate records of its expanding network and ensure compliance with the franchise agreement from the outset.
The inclusion of the lease agreement and Franchise Agreement details, such as the serial number, allows Chatime to verify the Outlet's location and confirm that the franchise is operating under the correct terms and conditions. This helps Chatime maintain brand consistency and quality control across all its locations.
In addition to the opening notice, the developer is also responsible for providing weekly and monthly reports to Chatime. These reports include gross sales figures, profit and loss statements, and information on Outlets opened, closed, or under development. This comprehensive reporting structure enables Chatime to closely monitor the performance and growth of its franchise network.