Does Chatime require developers to execute specific forms for direct debit payments?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) In the purchase of Raw Materials and other Products and any other miscellaneous goods from Franchisor, Developer must pay:
- (a) The total amount owing to Franchisor for Raw Materials, other Products and any other miscellaneous goods provided to Developer by Franchisor from time to time, in accordance with Franchisor's credit policy and Terms of Trade;
- (b) All amounts in full, net of any bank charges by direct deposit into Franchisor's bank account, as specified in Section 7 of Schedule 1, or in such other manner as Franchisor notifies Developer in writing, including direct debit from Developer's bank or credit account. Developer must execute any forms or documents required by Franchisor in order to effect payments by way of direct debit or any other electronic method.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, developers are required to execute specific forms or documents to facilitate direct debit payments. Specifically, when purchasing raw materials, other products, and miscellaneous goods from Chatime, developers must pay the total amount due via direct deposit or other methods that Chatime specifies in writing, which may include direct debit from the developer's bank or credit account. To enable payments via direct debit or other electronic methods, the developer must complete any necessary forms or documents that Chatime requires.
This requirement ensures that Chatime can efficiently collect payments for supplies and other goods. For a prospective Chatime developer, this means being prepared to provide banking or credit account information and to complete the necessary paperwork to set up direct debit payments as a condition of purchasing supplies from Chatime.
It is a fairly standard practice in franchising for franchisors to automate payment processes like direct debit to ensure timely and consistent payments from franchisees. This clause in the Chatime FDD simply formalizes that expectation and ensures developers are aware of the requirement to comply with Chatime's preferred payment methods.