What is the Chatime Developer required to do if legal restrictions are imposed on purchasing US dollars or transferring payments to a non-resident party?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Developer must use its best efforts to obtain any consents or authorizations which may be necessary in order to permit timely payments in Dollars of all amounts payable pursuant to this Agreement.
- (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 Chatime Developer faces specific obligations if legal restrictions impact their ability to purchase US dollars or transfer payments to non-resident parties. The Developer must immediately inform Chatime of the imposed restrictions.
During the period these restrictions are in place, Chatime has the option to direct the Developer to make payments in an alternative currency that is accessible to the Developer. Alternatively, Chatime can instruct the Developer to deposit the due but unpaid amounts into a designated account within a bank or institution in the Development Area. Any interest earned on these deposited funds will be retained by Chatime.
Chatime also has the option to receive payment in the form of products or services that the Developer can provide. The value of these products or services will be determined based on the actual cost to the Developer. If Chatime chooses this option, the Developer is responsible for delivering the products or services to Chatime or its designated agent or shipper within the Development Area.