What is the maximum 'Interest Rate' that Chatime can charge?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
ified as noncurrent liabilities. There were no amounts due to affiliates at December 31, 2023.
Due to/from member
In the ordinary course of business, the Company periodically advances funds to and receives funds from the Member of the Company. No interest is charged on these advances. Advances to and from the Member are noninterest bearing and have no specific date for repayment. The balance due from Member amounted to $20,108 and $300,000 at December 31, 2024 and 2023, respectively. Management expects these balances to be settled within the next year. The balance due to Member amounted to $60,015 and $- at De
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
The 2025 Chatime Franchise Disclosure Document does not explicitly state the maximum interest rate that Chatime can charge a franchisee. However, the document does state in Item 23 that in the ordinary course of business, the company periodically advances funds to and receives funds from the Member of the Company and that no interest is charged on these advances.
While the document does not specify a maximum interest rate, it does mention payment terms. Specifically, the franchisee must pay all Approved Suppliers for all Raw Materials and other Products by the due date for payment and in the manner specified by the Approved Suppliers and comply with the terms of any supplier agreements or terms of trade of the Approved Suppliers. In the purchase of Raw Materials and other Products and any other miscellaneous goods from Franchisor, Franchisee must pay the total amount owing to Franchisor for Raw Materials, other Products and any other miscellaneous goods provided to Franchisee by Franchisor from time to time, in accordance with Franchisor's credit policy and Terms of Trade.
As the FDD does not specify the maximum interest rate Chatime can charge, it is important for a prospective franchisee to ask Chatime directly about the specific interest rates and payment terms that may apply to any financing or credit arrangements. Understanding these terms is crucial for managing the financial obligations of the franchise.