What kind of information concerning the Chatime developer's operation must be disclosed to the franchisor?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
4 Other Obligations of Developer
4.1 Records and Reports
- (1) Developer must maintain and preserve at its principal office, full, complete and accurate records and reports pertaining to the development and operation of Outlets and the performance by Developer of its obligations under this Agreement. Such records must include the information prescribed in the Operations Manual or the Global Policies and Procedures.
- (2) In addition to the reports referred to in clause 4.1(1), Developer must deliver to Franchisor in the form periodically required by Franchisor, which may include in an electronic format, the following:
- (a) A notice of Outlet opening on or before the opening date of each Outlet, the lease agreement, if any, for the site where an Outlet is located, and the Franchise Agreement for such Outlet, including the serial number of such Outlet;
- (b) By the end of each Wednesday for each Outlet, a report of Gross Sales for the immediately preceding week;
- (c) By the tenth day of each Month for each Outlet, a report of the daily Gross Sales and a profit and loss account in the prior Month together with a report of the number, location and owner of Outlets opened, closed and under development during the immediately preceding Month;
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a developer must maintain and preserve complete records and reports about the development and operation of Chatime outlets and their performance under the agreement. These records must contain the information outlined in the Operations Manual or the Global Policies and Procedures.
In addition to general records, the Chatime developer must provide specific reports to Chatime in a format that Chatime requires periodically, potentially including electronic formats. These reports include a notice of each outlet opening on or before the opening date, along with the lease agreement (if any) for the outlet's location, and the Franchise Agreement, including the outlet's serial number.
Furthermore, the developer must submit weekly and monthly reports for each Chatime outlet. By the end of each Wednesday, a report of Gross Sales for the immediately preceding week is required. By the tenth day of each month, a report of daily Gross Sales and a profit and loss account for the prior month must be submitted, along with a report of the number, location, and owner of outlets opened, closed, and under development during the preceding month. This detailed reporting ensures Chatime has comprehensive oversight of the developer's operations and financial performance.