Regarding Chatime franchises, what connectivity requirements must the Developer ensure at each Outlet to allow data capture by the Franchisor's central polling server?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
3.7 Point of Sale System
- (1) Developer must, and must ensure that all Outlets, use a point of sale system nominated or approved by Franchisor. The supplier of the point of sale system must be approved by Franchisor*.*
- (2) Developer must ensure that connectivity at each Outlet is maintained and available at all times to allow all data generated by the point of sale system to be captured by Franchisor's central polling server.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the Developer must ensure that each Chatime Outlet maintains constant connectivity. This connectivity must be consistently available to enable the point of sale system to transmit all data to Chatime's central polling server.
This requirement ensures that Chatime can effectively monitor sales data and operational performance across all franchise locations. By maintaining continuous connectivity, the Developer facilitates the real-time capture of sales and other relevant data, which is crucial for Chatime to manage its supply chain, marketing efforts, and overall brand consistency.
The Developer is responsible for all initial and ongoing costs associated with this data capture. This includes the costs of setting up and maintaining the necessary internet connection and any related hardware or software. The specific payment procedures for these costs are detailed in the Operations Manual or Global Policies and Procedures, which the Developer must adhere to.
Failure to maintain the required connectivity could result in a breach of the development agreement, potentially leading to penalties or termination of the agreement. Therefore, it is essential for prospective Chatime Developers to factor in these connectivity costs and ensure they have a reliable and consistent internet service at each Outlet location.