What is the due date for the Additional Marketing Assistance Fee for a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
| Uniforms for First | $500 to $1,500 | $500 to $1,500 | $500 to $1,500 |
|---|---|---|---|
| Location | |||
| Initial Training for First | $5,000 | $5,000 | $5,000 |
| Fee(1) Type of | Amount | Due Date | Remarks |
| Audit Fee | Cost of audit | As invoiced | Payable if (i) we find that you have understated any amount you owe to us by more than 2%, or (ii) you fail to furnish reports, supporting records, other information or financial statements as required on a timely basis and we believe an audit is necessary. The Audit Fee includes accountants' fees, legal fees, and associated travel and accommodation expenses for our employees. |
| Interest Rate | The lesser of 1.5% per month or the highest rate allowed by law | As invoiced | If you fail to pay us any amount when due, you will pay interest on that amount at the Interest Rate from the time the amount should have been paid until it is paid. Interest accrues daily and may be capitalized by us. |
| Alternate | Costs incurred | As invoiced | You will reimburse us for our costs to test |
| Supplier Testing | a proposed alternate supplier regardless of | ||
| Fee | whether such supplier is approved. | ||
| Temporary Management Fee | Commercially reasonable fee not less than $30 per hour plus costs of travelling, accommodation, meals, and other expenses for operating and managing the Store | As invoiced | If you cease to conduct operations or abandon your franchise business, we or our nominee may, but are not required to, enter your business premises and operate and manage your franchise business until you comply with our direction or notice requiring you to recommence operations. You will pay us a reasonable Temporary Management Fee we determine and our associated expenses including, without limitation, costs for employee wages and entitlements, travel, accommodations, and meals. |
| Taxes | Amount imposed by your state, local, and federal governments | As incurred | You will pay all applicable taxes. If any laws are changed, new laws are introduced or courts, or any relevant authority interprets laws differently so as to require us to pay a tax, duty, excise, or levy (impost) on amounts we receive from you (other than income tax) or on goods or services we supply, you will pay us an additional amount so that our net yield is unchanged. |
| Additional Marketing Assistance Fee | Current rates are $250 to $500 per person per day | As invoiced | If you request any additional marketing assistance from us that is not within the scope of assistance provided for by the Brand Marketing Fee, you will pay us any additional fees we charge for such |
Source: Item 6 — Other Fees (FDD pages 13–17)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the Additional Marketing Assistance Fee is due 'As invoiced.' This means that Chatime will send the franchisee a bill for any additional marketing assistance requested, and the franchisee must pay the fee according to the terms specified on that invoice.
The amount of the Additional Marketing Assistance Fee currently ranges from $250 to $500 per person per day. This fee applies when a franchisee requests marketing support beyond what is already covered by the Brand Marketing Fee, which is 2.0% of gross sales, as detailed elsewhere in the FDD.
Prospective Chatime franchisees should clarify with the franchisor what specific services are included under the standard Brand Marketing Fee versus what would trigger the Additional Marketing Assistance Fee. Understanding the scope of services covered by each fee will help franchisees budget appropriately for marketing expenses and avoid unexpected costs. Franchisees should also inquire about typical invoice payment terms to ensure they can meet the financial obligations.