Regarding legal compliance for Chatime, who is responsible for securing and maintaining all required licenses, permits, and certificates related to the Developer's obligations?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
4.4 Compliance with Legal Requirements
- (1) Developer must secure and maintain in force in its name all required licenses, permits, and certificates relating to Developer's obligations under this Agreement. For the avoidance of doubt, Developer must ensure that it is qualified to import the Products, clear the customs and do anything relating thereto at its Cost.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the Developer is responsible for securing and maintaining all required licenses, permits, and certificates relating to the Developer's obligations under the agreement. This includes ensuring they are qualified to import products and handle customs clearance at their own cost.
This means that as a Chatime Developer, you are responsible for obtaining and keeping current all necessary legal documentation to operate your business. This encompasses everything from business licenses to health permits, and any certifications needed to import goods.
The FDD emphasizes that the Developer bears the financial responsibility for all these compliance measures. This is a standard practice in franchising, where franchisees/developers typically handle local compliance, while the franchisor focuses on brand-level compliance. Failing to maintain these licenses and permits could result in fines, penalties, or even the closure of the Chatime outlets, so it is crucial to stay organized and proactive in managing these requirements.