Where in the Chatime FDD can I find details about Chatime's marketing obligations?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must pay the Brand Marketing Fee to Franchisor on the tenth day of each Month. The Brand Marketing Fee will be determined based on the Gross Sales of the Outlet for the previous Month.
7.3 Use of the Brand Marketing Fee
- (1) Franchisor may, in its sole discretion, use the Brand Marketing Fee to pay the Costs of:
- (a) Developing and conducting local, regional or national advertising and promotional campaigns, including advertising in international or regional publications;
- (b) Engaging advertising agencies and marketing and research consultants;
- (c) Providing Franchisee with samples of brochures and marketing materials used by Franchisor or its Affiliates, for amendment and use, subject to clause 7.3(4), by Franchisee in the Territory;
- (d) Coordinating and administering the activities set out in clauses 7.3(1)(a) to 7.3(1)(c), including reasonable overhead and administrative Costs (including employee costs), the Cost of materials and printing Costs; and
- (e) Any other marketing activity for the purpose of developing the Chatime brand internationally, regionally, or in the Territory.
- (2) In applying the Brand Marketing Fee for the purposes set out above, Franchisor may combine the Brand Marketing Fee with other brand marketing fees provided by other franchisees. There is no assurance that any portion of your Brand Marketing Fee or the Brand Marketing Fund will be allocated or spent for advertising in your Territory or region of the country. The monies paid to the Brand Marketing Fund do not constitute a trust fund.
- (3) If Franchisee requests any additional marketing assistance from Franchisor that, in the opinion of Franchisor, is not within the scope of assistance provided for by the Brand Marketing Fee, then Franchisee must pay to Franchisor upon invoice by Franchisor any additional fees and charges levied by Franchisor for such additional marketing assistance.
- (4) Franchisee must not use any marketing or promotional materials unless that marketing or promotional material has been first approved in writing by Franchisor.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Item 23 contains information regarding marketing obligations. Specifically, it details the franchisee's responsibility to pay a Brand Marketing Fee to Chatime on the tenth day of each month, calculated from the Outlet's Gross Sales of the previous month.
The FDD outlines how Chatime, at its discretion, may use the Brand Marketing Fee. These uses include developing advertising campaigns at the local, regional, or national level, engaging advertising agencies and marketing consultants, providing franchisees with marketing materials, coordinating marketing activities, and any other activity that develops the Chatime brand internationally, regionally, or in the Territory. Chatime can combine the Brand Marketing Fee with fees from other franchisees, and there is no guarantee that the fees will be used in the franchisee's specific territory or region.
Furthermore, franchisees need written approval from Chatime before using any marketing or promotional materials. If a franchisee requires additional marketing assistance beyond what the Brand Marketing Fee covers, they must pay additional fees invoiced by Chatime. This section clarifies the financial obligations of the franchisee related to marketing and the control Chatime maintains over marketing strategies and materials.