What happens if a Chatime franchisee does not offer for sale the full menu that Chatime prescribes?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Franchisee acknowledges that the Chatime Menu forms a key part of the Chatime brand and image. Accordingly, Franchisee must ensure that it strictly complies with the requirements of Franchisor relating to:
- (a) The Chatime Menu; and
- (b) The areas and manner of preparation of food items for sale from the Outlet,
as set out in the Operations Manual or as otherwise specified from time to time by Franchisor.
- (2) Franchisee must ensure that it:
- (a) Offers for sale from the Outlet the complete range of food and beverages on the Chatime Menu and that such food and beverage items are prepared in accordance with the Chatime Menu;
- (b) Does not offer, sell, or supply any food or beverages that are not specified on the Chatime Menu; and
- (c) Acquires all products (including Raw Materials) required to prepare Products on the Chatime Menu only from Approved Suppliers.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD pages 42–43)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, franchisees must offer the complete range of food and beverages on the Chatime Menu. The Chatime Menu is considered a key part of the Chatime brand and image. Franchisees must also prepare these items according to Chatime's standards, as detailed in the Operations Manual or as specified by Chatime.
Franchisees are prohibited from selling any food or beverages not included on the Chatime Menu. Additionally, all products, including raw materials, needed to prepare menu items must be sourced exclusively from Approved Suppliers.
Failure to comply with these menu requirements could result in penalties or termination of the franchise agreement, as maintaining uniformity in product offerings is crucial to Chatime's brand integrity and reputation. Prospective franchisees should carefully review the Operations Manual and Approved Supplier list to fully understand these obligations.