What discretion does Chatime have in developing and conducting international or regional advertising and promotional campaigns?

According to Chatime's 2025 Franchise Disclosure Document, Chatime has the discretion to develop and conduct international or regional advertising and promotional campaigns. This means that Chatime has the authority to create and implement these campaigns as they deem necessary.

For a prospective franchisee, this indicates that Chatime controls the broader advertising strategies and initiatives beyond the local level. While franchisees are required to spend a minimum of 2.0% of gross sales on local marketing, Chatime manages larger-scale campaigns that could impact the brand's overall image and recognition.

This also means that Chatime is not required to allocate or spend any portion of the Brand Marketing Fund in a franchisee's specific territory or region. Franchisees should be aware that while they contribute to the Brand Marketing Fund, there is no guarantee that these funds will directly benefit their particular location. Franchisees need to rely on Chatime's decisions regarding the allocation of these funds for broader advertising efforts.