What purchasing and distribution cooperatives does Chatime currently have in place?

According to Chatime's 2025 Franchise Disclosure Document, Chatime currently has purchasing and distribution cooperatives with Sysco and Image One. Chatime may also negotiate purchase arrangements with suppliers for the benefit of the entire Chatime system. However, the FDD states that Chatime does not provide material benefits to franchisees, such as renewal options or granting additional franchises, based on their purchase of particular products or services or their use of particular suppliers.

Chatime also has the right to require franchisees to purchase items or services necessary to operate their Chatime store from approved or designated suppliers, including Chatime itself or its affiliates. The FDD lists several categories for which Chatime currently has approved suppliers, including food products and ingredients, real estate and construction management services, architectural, engineering, and design services, signage, furniture and equipment, technology set-up, branded ingredients, payroll services, human resource services, and initial local marketing.

Prospective franchisees should be aware that Chatime's affiliates, La Kaffa and Chatime Wholesale LLC, are currently the only approved suppliers for certain products and supplies such as ingredients, supplies, and equipment. The FDD notes that officers of the franchisor have an indirect ownership interest in these affiliates. This arrangement means that a significant portion of a franchisee's purchases will be directed to suppliers with ties to Chatime's leadership. Franchisees are required to purchase an adequate and balanced quantity of stock of approved products, with inventory requirements detailed in the Operations Manual or communicated directly by Chatime.

Chatime may also receive promotional allowances, volume discounts, commissions, rebates, and other payments from suppliers and vendors. These arrangements could potentially influence the choice of suppliers and the prices charged to franchisees. The FDD indicates that the commissions, rebates, or fees Chatime may receive from franchisee purchases could cause the price for such products or services to be higher than market value. Franchisees do have the option to request approval for alternative suppliers, but Chatime's criteria for approving suppliers is not disclosed to franchisees or potential suppliers. Chatime may also designate exclusive suppliers for some product categories.