How will Chatime provide franchisees with a list of approved suppliers?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
You may only market, offer, sell and provide the approved products and services at your Chatime Store in a manner that meets our System standards and specifications. We will provide you with a list of our then-current approved products and services, along with their standards and specifications, as part of the Operations Manual or otherwise in writing prior to the opening of your Chatime Store. We may update or modify this list in writing at any time.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–25)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Chatime will provide a list of approved suppliers to franchisees in writing as part of the Operations Manual or otherwise in writing prior to the opening of their Chatime store. Chatime may update or modify this list as they deem appropriate.
Chatime franchisees are required to purchase products, ingredients, goods, supplies, equipment, inventory, insurance, payroll service, real estate and project management services, and accounting services from Chatime or one of its approved suppliers, which may include Chatime affiliates. Currently, La Kaffa and Chatime Wholesale LLC are the only approved suppliers for certain products and supplies such as ingredients, supplies, and equipment. Officers of the franchisor own an indirect ownership interest in La Kaffa and Chatime Wholesale LLC.
Chatime may grant franchisees approval to obtain food products, supplies, equipment, and materials for their Chatime Store and services to their Chatime Store from other sources as long as they meet Chatime's specifications, standards, and requirements. Every supplier must demonstrate that it can meet all System specifications, standards, and requirements and has adequate capacity to supply Chatime franchisees' quantity and delivery needs to Chatime's satisfaction. Before approving any supplier, Chatime may take into consideration consistency with products or name brands already in the System, economies of scale achieved by larger volumes, and certain other benefits that a supplier may offer such as new product development capability. Chatime may withhold approval of a supplier for any reason.
Chatime's policy for approved products and approved suppliers is intended to ensure the consistency and quality of product standards and branding of the System and to protect the intellectual property of the Franchisor and to assist the Franchisee to comply with all laws and regulations. The approved products are listed in the Operations Manual (or as otherwise notified by the Franchisor).