To whom are the payments for opening inventory and supplies payable for a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
ree months, unless otherwise indicated:
| Estimated Amount | Method of | When | Payable to | |
|---|---|---|---|---|
| Type of Expenditure | ||||
| Range | Payment | Payable | Whom | |
| Initial Franchise Fee(1) | $54,900 | Lump sum | Up |
Source: Item 7 — Estimated Initial Investment (FDD pages 17–22)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the payments for opening inventory and supplies are payable to Chatime's affiliates. The estimated cost for the opening inventory and supplies ranges from $10,000 to $16,000.
Chatime requires franchisees to purchase an initial inventory of products and supplies before opening their store. These products and supplies must be purchased from Chatime's affiliates or approved suppliers. Currently, Chatime's affiliates are the only approved suppliers.
The specific amount of the initial inventory purchase will depend on factors such as the type of Chatime store, the location, and the storage capacity of the store. This ensures that each franchise location is adequately stocked to meet initial customer demand and maintain Chatime's standards.
Prospective franchisees should factor this expense into their initial investment and be aware that they must source these supplies directly from Chatime's designated suppliers. This requirement helps Chatime maintain quality control and consistency across all franchise locations.