Must all product sales for a Chatime franchise be made from the store?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Your franchise is limited to your specified Territory and all product sales must be made from your Store. You are not permitted to sell or distribute our goods or services through the use of the Internet or other electronic communications, except for digital transactions via our approved loyalty, delivery aggregator and brand platforms as designated from time to time. We may require you to participate in a gift card and loyalty program in accordance with our policies and brand procedures.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD pages 42–43)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, all product sales must be made from the physical store location. The franchise agreement specifies that the franchisee's business is limited to the operation of the Chatime store within the designated territory. Franchisees are not allowed to sell or distribute goods and services through the internet or other electronic communications.
However, there are exceptions to this rule. Chatime franchisees can engage in digital transactions through approved loyalty, delivery aggregator, and brand platforms as designated by Chatime. This allows for online ordering and delivery services through specific channels that Chatime has approved.
This restriction ensures that Chatime maintains control over its brand and distribution channels. It also means that franchisees must rely on the physical store location to generate most of their sales, while adhering to approved digital platforms for online transactions. Prospective franchisees should be aware of these limitations and consider how they might impact their business strategy and revenue potential.