factual

What is the Chatime developer required to do if legal restrictions are imposed on purchasing US dollars or transferring payments to non-residents?

Chatime Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (2) If at any time, any legal restriction is imposed upon the purchase of Dollars or the transfer to or credit of a non-resident party with payments in Dollars, Developer must notify Franchisor immediately. While such restrictions are in effect, Franchisor may require payment in any currency designated by Franchisor that is available to Developer or, at Franchisor's option, may require Developer to deposit all amounts due but unpaid as a result of such a restriction in any type of account, in any bank or institution in the Development Area designated by Franchisor. Franchisor will be entitled to all interest earned on such deposits. Franchisor may also elect to receive payment in the form of products or services available to Developer, the value of which will be based on the actual cost of such products or services to Developer. If payment is made in products or services, Developer agrees to deliver such products or services to Franchisor or its designated agent or shipper within the Development Area.

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

What This Means (2025 FDD)

According to Chatime's 2025 Franchise Disclosure Document, a developer must immediately notify Chatime if any legal restriction is imposed upon purchasing US dollars or transferring payments to a non-resident party. While these restrictions are in place, Chatime has the option to require payment in a currency they designate that is available to the developer.

Alternatively, Chatime can require the developer to deposit all unpaid amounts in an account at a bank or institution within the development area that Chatime designates. In this case, Chatime is entitled to all interest earned on these deposits.

Chatime may also choose to receive payment in the form of products or services available to the developer. The value of these products or services will be based on the actual cost to the developer, and the developer must deliver these products or services to Chatime or its designated agent or shipper within the development area.

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.