What is the due date for the Temporary Management 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, tr |
Source: Item 6 — Other Fees (FDD pages 13–17)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the Temporary Management Fee is due 'As invoiced.' This fee is charged if Chatime or its nominee has to step in to operate and manage a franchise location because the franchisee has ceased operations or abandoned the business.
The Temporary Management Fee covers the commercially reasonable costs Chatime incurs while managing the store. This includes a minimum of $30 per hour, plus costs related to travel, accommodation, meals, and other expenses. The franchisee is responsible for covering these costs, which can include employee wages, entitlements, travel, accommodations, and meals for the Chatime personnel managing the location.
Since the fee is due 'As invoiced,' Chatime will provide the franchisee with an invoice detailing the charges for the temporary management services. The franchisee is then expected to pay the invoiced amount according to the terms specified on the invoice. It is important for a prospective Chatime franchisee to understand the circumstances under which this fee may be applied and to factor in the potential costs associated with it.