What are Chatime franchisees required to do regarding compliance with the Chatime system and system standards?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
ough the issue of Global Policies and Procedures, constitute provisions of this Agreement. Both parties agree and acknowledge that Franchisor does not intend to prescribe System Standards that affect the fundamental rights of Franchisee in this Agreement.
4.4 Compliance with the System
Franchisee agrees to diligently and continuously monitor compliance with the System and System Standards, to strictly enforce compliance with the System and System Standards by Franchisee and to furnish assistance to Franchisor to correct deficiencies in operation.
4.5 Franchise Premise
Franchisee must at all times during the Initial Term maintain office facilities for operation of the Franchise. Such office facilities will have a dedicated telephone line, which must be answered in the Network Name and will otherwise be equipped and furnished and have signage in a manner consistent with the image and minimum standards of Franchisor.
4.6 Customer Complaint System
Franchisee must establish a customer complaint system to redress all customer complaints. Such system must be approved by Franchisor.
4.7 Site Selection
(1) Franchisor may from time to time modify site selection criteria and processes. Franchisee may modify Franchisor's site selection criteria and processes, as appropriate for use in the Territory. Any modified site selection criteria and processes must be submitted to Franchisor for its approval. Franchisor must notify Franchisee of its approval of Franchisee site selection criteria and processes or otherwise of any changes that need to be made. Franchisee must use the site selection criteria and processes as approved by
Franchisor (Territory Site Selection Criteria) for the selection of sites in the Territory.
(2) Franchisee must select sites in the Territory that it reasonably believes conform with the Territory Site Selection Criteria.
4.8 Site Approval
(1) Franchisee must not establish, or permit any others to establish, an Outlet without first obtaining the written approval of Franchisor.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, franchisees must diligently and continuously monitor compliance with the Chatime system and system standards. They are also required to strictly enforce compliance with these standards, and furnish assistance to Chatime to correct any operational deficiencies. This means a Chatime franchisee is not only responsible for adhering to the brand's established procedures and guidelines but also for actively ensuring that their staff and operations consistently meet those standards.
Chatime franchisees must also maintain office facilities for the operation of the franchise, equipped and furnished in a manner consistent with Chatime's image and minimum standards. These facilities must have a dedicated telephone line answered in the Chatime Network Name. Furthermore, franchisees are obligated to comply with all System Standards, which Chatime may periodically modify or supplement. Franchisees must adhere to any revised System Standards within 7 days of receiving notice from Chatime about the changes.
Compliance with the Chatime system also extends to the Chatime menu. Franchisees must ensure strict compliance with Chatime's requirements regarding the menu and the preparation of food items, as outlined in the Operations Manual or as specified by Chatime. They must offer the complete range of food and beverages on the Chatime Menu, prepared according to Chatime's standards, and must not offer any items not specified on the menu. All products, including raw materials, must be acquired only from Approved Suppliers. This ensures consistency and quality across all Chatime locations, protecting the brand's reputation and customer experience.