What is the duration of the initial non-exclusive license agreement for the use of the registered name "Chatime"?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
ents of operations and member's equity (deficit).
NOTE 8. RELATED-PARTY TRANSACTIONS
License agreement
On September 23, 2022, the Licensee Parties entered into a 30-year non-exclusive license agreement with the Licensor for the use of the registered name "Chatime" (the "license agreement"). Pursuant to the license agreement, the Licensee Parties acquired the rights to sell "Chatime" franchises, and the right to earn franchise fees, royalties and other fees from franchisees. The license agreement will be renewed as long as a request for renewal has been submitted at least six months prior to the expiration term, for successive terms of 10 years, unless one party provides the other party with notice of its intention not to renew the license agreement at least 90 days before the end of the thencurrent term. The Company pays a 1.25% monthly royalty fee to the Licensor based on franchise outlet gross sales. Royalties paid to the Licensor for the year ended December 31, 2024 totaled $22,115, which is included in "Selling, general and administrative expenses" in the accom
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the initial non-exclusive license agreement for the use of the registered name "Chatime" is 30 years. This agreement, established on September 23, 2022, grants the Licensee Parties the rights to sell Chatime franchises and collect franchise fees, royalties, and other fees from franchisees.
This license agreement is renewable, provided a request for renewal is submitted at least six months before the current term expires. The renewal terms are for successive periods of 10 years. However, either party can choose not to renew the agreement by providing notice of their intention at least 90 days before the end of the then-current term.
Chatime pays a monthly royalty fee of 1.25% to the Licensor, calculated based on the gross sales of franchise outlets. For the year ending December 31, 2024, these royalties totaled $22,115 and were included in "Selling, general and administrative expenses." No royalties were paid to the Licensor in 2023.