Is Chatime required to include three years of financial statements?

According to Chatime's 2025 Franchise Disclosure Document, the company is not required to include three years of financial statements. As of December 31, 2024, Chatime had not been in business for three years or more. Therefore, the FDD does not include all the financial statements typically mandated by the FTC Rule for the last three fiscal years. Chatime's fiscal year ends on December 31.

Instead of three years, the FDD includes audited financial statements as of December 31, 2024, along with statements of operations, member's equity (deficit), and cash flows for the years then ended. The financial statements also include balance sheets as of December 31, 2024 and 2023. Citrin Cooperman issued an independent auditor's report, providing an opinion that the financial statements present fairly the financial position of Chatime Franchise LLC as of December 31, 2024 and 2023.

Prospective franchisees should be aware that the absence of three years of financial data is due to the company's relatively short operating history. This does not necessarily indicate financial instability, but it does mean there is less historical data available for review. Franchisees may want to request additional financial information or clarification from Chatime to gain a better understanding of the company's financial performance and stability.