factual

What is the implication of Chatime not being in business for three years?

Chatime Franchise · 2025 FDD

Answer from 2025 FDD Document

The Franchisor is Chatime Franchise, LLC, which will be referred to as "Chatime," "we," or "us." The term "you" or "Franchisee" means the person or legal entity that is granted the franchise and the direct and indirect owners of any legal entity that becomes a franchisee. Our affiliates license franchised Chatime Stores and operate company-owned Chatime Stores both in the U.S. and internationally. We do not conduct any business activity other than franchising Chatime Stores and other Stores under different marks.

The Franchisor

We are a Delaware limited liability company organized on July 12, 2022. Our principal place of business is 8 The Green, Suite A, Dover, DE 19901. We currently conduct business under our organizational name "Chatime Franchise LLC" and the marks "Chatime® ," "Chatime

®", " ® ", " ® ", " " and "Duan Chun Zhen." We do not conduct business or intend to do business under any other names. We have no predecessor required to be included in this Item 1.

As of December 31, 2024, our affiliates owned and operated three company-owned Chatime Store locations in Southern California, which opened in 2023. We began offering Chatime franchises in April 2023.

Our agents for service of process are disclosed in Exhibit D. Our agent for service of process in Delaware is A Registered Agent, Inc., 8 The Green, Suite A, Dover, Delaware 19901. We do not have a physical office in Delaware.

Our Parent and Affiliates

Our parent company, Chatime Global LLC ("Chatime Global"), is a Delaware limited liability company organized on July 12, 2022. Chatime Global's principal place of business is SE702 66 Goulburn Street, Sydney NSW 2000, Australia.

Chatime Global is owned fifty percent by Chatime International Corp ("Chatime International"), a Delaware corporation incorporated on July 7, 2022. Chatime International's principal place of business is SE702 66 Goulburn Street, Sydney NSW 2000, Australia.

Source: Item 21 — Financial Statements (FDD page 58)

What This Means (2025 FDD)

According to the 2025 Chatime Franchise Disclosure Document, Chatime Franchise, LLC was organized in July 2022. The FDD indicates that Chatime began offering franchises in April 2023. Chatime's affiliate owned and operated three company-owned stores that opened in 2023.

Because Chatime has been offering franchises for a relatively short time, prospective franchisees have a limited operating history to review. This means there is less historical data available regarding the performance of Chatime franchises, potential challenges, and the overall success rate of franchisees.

While Chatime itself has a limited operating history, the FDD mentions that its parent company, Chatime Global LLC, is based in Australia. Chatime Global is owned fifty percent by Chatime International Corp. Prospective franchisees may want to investigate the history and performance of Chatime franchises internationally to gain a broader understanding of the brand's potential.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.