What records can Chatime inspect, audit, and copy from a Chatime Developer?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
dverse impact on the performance of Franchisee under this Agreement or the goodwill associated with the Marks or the Outlet.
- (5) Franchisee must fully disclose to Franchisor all information concerning the Franchised Business as Franchisor may reasonably require.
5.5 Inspections and Audits
- (1) Franchisor and its agents may at any time during normal Business Hours inspect, audit and make copies or extracts of the records and reports described in clause 5.4 and any other business records, bookkeeping and accounting records, electronic records and files, value added, sales, use, service, and income tax records and returns, and other records of The Franchised Business.
- (2) Franchisor may, at any time, during normal Business Hours and one hour before and one hour after normal Business Hours, inspect the premises of the Outlet for the purpose of:
- (a) Monitoring compliance by Franchisee of its obligations under this Agreement; and
- (b) Ensuring compliance by Franchisee of its financial obligations under this Agreement and for the purpose of verifying any financial information provided by Franchisee to Franchisor.
- (3) Franchisor may conduct an audit of Franchisee's books of account.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Chatime has the right to inspect, audit, and make copies or extracts of various records from a Chatime Developer. These include the records and reports pertaining to the development and operation of Outlets, as well as the Developer's performance of obligations under the Development Agreement. These records must include the information prescribed in the Operations Manual or the Global Policies and Procedures.
Chatime can also inspect, audit, and copy any other business records, bookkeeping and accounting records, electronic records and files, value added, sales, use and service and income tax records and returns, and other records of the Developer's Operation and of the Outlets and the books and records of Developer.
Chatime can perform these inspections and audits at any time during normal Business Hours. Additionally, Chatime may inspect the premises of any Outlet during normal Business Hours, as well as one hour before and one hour after normal Business Hours, to monitor the Developer's compliance with operational obligations under the Development Agreement.