How must Chatime franchisees make payments to the franchisor under the franchise agreement?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) In the purchase of Raw Materials and other Products and any other miscellaneous goods from Franchisor, Franchisee must pay:
- (a) The total amount owing to Franchisor for Raw Materials, other Products and any other miscellaneous goods provided to Franchisee by Franchisor from time to time, in accordance with Franchisor's credit policy and Terms of Trade;
- (b) All amounts in full, net of any bank charges by direct deposit into Franchisor's bank account, as specified in Section 7 of Schedule 1, or in such other manner as Franchisor notifies Franchisee in writing, including direct debit from Franchisee's bank or credit account. Franchisee must execute any forms or documents required by Franchisor in order to effect payments by way of direct debit or any other electronic method.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, franchisees are required to adhere to specific payment methods for raw materials, products, and other miscellaneous goods purchased from the franchisor. Franchisees must pay the total amount owed to Chatime in accordance with the franchisor's credit policy and terms of trade.
Specifically, all payments must be made in full, net of any bank charges, via direct deposit into Chatime's designated bank account, as detailed in Section 7 of Schedule 1. Alternatively, payments can be made in any other manner that Chatime specifies in writing to the franchisee. This includes the possibility of direct debit from the franchisee's bank or credit account.
To facilitate payments via direct debit or other electronic methods, franchisees are obligated to complete and submit any necessary forms or documents requested by Chatime. This ensures that the franchisor can efficiently process payments and maintain accurate financial records. Franchisees should be aware of these requirements and be prepared to comply with the specified payment methods to maintain good standing under the franchise agreement.