What events or developments must a Chatime developer immediately report to the franchisor?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) In addition to the reports referred to in clause 4.1(1), Developer must deliver to Franchisor in the form periodically required by Franchisor, which may include in an electronic format, the following:
- (a) A notice of Outlet opening on or before the opening date of each Outlet, the lease agreement, if any, for the site where an Outlet is located, and the Franchise Agreement for such Outlet, including the serial number of such Outlet;
- (b) By the end of each Wednesday for each Outlet, a report of Gross Sales for the immediately preceding week;
- (c) By the tenth day of each Month for each Outlet, a report of the daily Gross Sales and a profit and loss account in the prior Month together with a report of the number, location and owner of Outlets opened, closed and under development during the immediately preceding Month;
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a developer has several reporting obligations to the franchisor. Specifically, the developer must provide a notice of Outlet opening on or before the opening date for each Outlet. This includes submitting the lease agreement, if any, for the site and the Franchise Agreement, including the serial number of the Outlet.
Additionally, the developer is required to deliver reports on a weekly and monthly basis. By the end of each Wednesday, a report of Gross Sales for each Outlet for the immediately preceding week must be submitted. Furthermore, by the tenth day of each month, the developer must provide a report of daily Gross Sales and a profit and loss account for the prior month for each Outlet. This monthly report should also include the number, location, and owner of Outlets opened, closed, and under development during the immediately preceding month.
These reporting requirements ensure that Chatime maintains oversight and control over the development and performance of its franchise locations. A prospective developer should be prepared to implement systems for collecting and reporting this data accurately and promptly. Failure to comply with these reporting obligations could potentially lead to breaches of the development agreement.