What is the due date for the Alternate Supplier Testing 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. |
Source: Item 6 — Other Fees (FDD pages 13–17)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the Alternate Supplier Testing Fee is due as invoiced. This means that Chatime will send the franchisee an invoice for the costs incurred to test a proposed alternate supplier, and the franchisee must pay by the due date specified on that invoice.
The fee covers Chatime's costs to test a proposed alternate supplier, regardless of whether the supplier is ultimately approved. This implies that franchisees may seek alternative suppliers, but Chatime retains control over supplier approval to maintain brand standards and quality.
Prospective Chatime franchisees should inquire about the typical costs associated with alternate supplier testing and the factors that influence these costs. Understanding the invoice terms, such as the payment timeframe and acceptable payment methods, is also crucial for managing cash flow and avoiding late payment penalties.