factual

When purchasing raw materials from Chatime's approved suppliers, what is the Developer required to comply with?

Chatime Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (1) Developer must pay all Approved Suppliers for all Raw Materials and other Products by the due date for payment and in the manner specified by the Approved Suppliers and comply with the terms of any supplier agreements or terms of trade of the Approved Suppliers.

Source: Item 23 — Receipts (FDD pages 58–262)

What This Means (2025 FDD)

According to Chatime's 2025 Franchise Disclosure Document, a Developer must adhere to specific payment and trading terms when purchasing raw materials from approved suppliers. The Developer is required to pay the approved suppliers by the due date and in the manner specified by them. This includes compliance with the terms outlined in any supplier agreements or the approved suppliers' terms of trade.

This requirement ensures that Chatime maintains good relationships with its suppliers and that the Developer operates within established business practices. By adhering to the payment terms and supplier agreements, the Developer helps to ensure a consistent and reliable supply of raw materials, which is crucial for maintaining the quality and availability of Chatime's menu items.

Failure to comply with these payment and trading terms could lead to disruptions in the supply chain, potentially affecting the Developer's ability to meet customer demand and maintain Chatime's brand standards. Therefore, it is essential for a prospective Chatime Developer to understand and adhere to these requirements to ensure smooth operations and maintain positive supplier relationships.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.