What is the relationship between Chatime and La Kaffa International Co., Ltd.?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
beginning | | 5,287 | | | CASH - ENDING | $ | 144,258 | $ 5,287 |
NOTE 1. ORGANIZATION AND NATURE OF OPERATIONS
Chatime Franchise LLC (the "Company") was formed on July 12, 2022, as a wholly-owned subsidiary of Chatime Global LLC (the "Member"), as a Delaware limited liability company to sell franchises pursuant to a license agreement dated September 23, 2022, between the Company's sole member, Chatime Global LLC, and its subsidiaries ("Licensee Parties") and La Kaffa International Co., Ltd. (the "Licensor"). The Licensor has 100% ownership interest in Chatime Northstar which has 50% ownership interest of the Member. Pursuant to the Company's standard franchise agreement, franchisees will operate a Chatime food service offering gourmet coffees and teas, other coffee and tea-based beverages, bubble tea, compatible food products, coffee and tea makers, and related supplies, accessories, and gifts at a specified location within a designated geographic territory.
The Company is a limited liability company and, therefore, the Member is not liable for the debts, obligations or other liabilities of the Company, whether arising in contract, tort or otherwise, unless the Member has signed a specific guarantee.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of accounting
The accompanying financial statements has been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").
Use of estimates
The preparation of financial statements in conformity with U.S.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, La Kaffa International Co., Ltd. plays a significant role in the Chatime franchise system. La Kaffa International Co., Ltd. is the indirect parent company of Chatime Franchise, LLC and has developed the business, proprietary know-how, information, systems, and procedures, including distinctive business formats, specifications, and trademarks, used to establish and operate Chatime retail businesses. Chatime Franchise, LLC has been licensed by La Kaffa International Co., Ltd. to use this system and to grant others the right to open and operate Chatime outlets.
Chatime Franchise LLC was formed on July 12, 2022, as a wholly-owned subsidiary of Chatime Global LLC. Chatime Global LLC has a license agreement with La Kaffa International Co., Ltd., effective September 23, 2022. La Kaffa International Co., Ltd. has 100% ownership interest in Chatime Northstar, which in turn has 50% ownership interest of Chatime Global LLC.
This structure means that La Kaffa International Co., Ltd. ultimately controls the Chatime system's intellectual property and operational methods. As the indirect parent company and licensor, La Kaffa benefits from the franchise fees and royalties paid by Chatime franchisees. It also implies that La Kaffa sets the standards and guidelines that Chatime franchisees must follow. Prospective franchisees should recognize that La Kaffa's influence ensures consistency across all Chatime locations, but it also means that Chatime franchisees must adhere to the standards set by La Kaffa.