Can Chatime place conditions on the approval of a supplier?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Approved Supplier means Franchisor or a supplier or suppliers approved in writing by Franchisor for the supply of Products and equipment to Developer and/or Franchisees.
Franchisee may not replace the Managing Owner without Franchisor's prior written approval, which Franchisor may condition on, among other things, attendance and satisfactory completion by the prospective new Managing Owner of our initial training program at Franchisee's expense.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Chatime can place conditions on the approval of a supplier. The FDD defines an "Approved Supplier" as Franchisor or a supplier or suppliers approved in writing by Franchisor for the supply of Products and equipment to Developer and/or Franchisees."
This means that franchisees are required to purchase products and equipment only from suppliers that Chatime has approved. This allows Chatime to maintain quality control and consistency across all franchise locations.
Furthermore, the FDD states that a franchisee may not replace the Managing Owner without Chatime's prior written approval, which Chatime may condition on, among other things, attendance and satisfactory completion by the prospective new Managing Owner of their initial training program at Franchisee's expense. This demonstrates Chatime's ability to place conditions on approvals.