If a prospective franchisee is considering buying an existing Chatime outlet, what information is the franchisor permitted to provide?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
| Net Sales - 2024 | |
|---|---|
| Location 1 | $ 793,037 |
| Location 2 | $ 476,602 |
| Location 3 | $ 243,569 |
| Location 4 | $ 210,709 |
| Location 5 | $ 125,407 |
Other than the preceding financial performance representations, we do not make any financial performance representations. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor'smanagement by contactingCarlos Antonius,Company Secretary, at 8 The Green, Suite A, Dover, Delaware 19901, tel. +61 292830880, email companysecretaryusa@chatime.com, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — Financial Performance Representations (FDD pages 52–53)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, when a prospective franchisee is considering purchasing an existing Chatime outlet, Chatime may provide the actual records of that specific outlet. This is an exception to the general rule that Chatime does not make financial performance representations beyond what is included in Item 19 of the FDD.
Specifically, Item 19 includes historic Net Sales information for calendar year 2024 for Chatime franchise locations operating within the United States of America which have been operating more than 12 months in their current location and were operating as of December 31, 2024 under agreement with Chatime Franchise LLC. Net Sales means all revenue from the sale of all products and sources, derived from, or originating from the relevant Chatime store, including online sales fulfilled from the location. Net sales includes transactions, whether for cash, check, or credit, and regardless of collection in the case of check or credit, less any customer refunds, staff tips and/or sales taxes collected from customers and actually transmitted to the appropriate taxing authorities.
The FDD also cautions that if a prospective franchisee receives any other financial performance information or projections of future income beyond the actual records of the existing outlet, they should report it to Chatime's management by contacting Carlos Antonius, Company Secretary, at 8 The Green, Suite A, Dover, Delaware 19901, tel. +61 292830880, email companysecretaryusa@chatime.com the Federal Trade Commission, and the appropriate state regulatory agencies. This is to ensure that franchisees are not misled by unauthorized or unsubstantiated financial claims.
The Net Sales information included in Item 19 is obtained from store point-of-sale (POS) reports and other materials submitted by the retail locations and franchisee. Neither Chatime, any of its affiliates nor an independent certified public accountant has independently audited or verified the information. For example, the Net Sales for 2024 for five locations were: Location 1 - $793,037, Location 2 - $476,602, Location 3 - $243,569, Location 4 - $210,709, and Location 5 - $125,407.