Who is responsible for paying stamp duties and comparable taxes associated with the Chatime agreement and any collateral agreements?

According to Chatime's 2025 Franchise Disclosure Document, the franchisee is responsible for paying all stamp duties and comparable taxes associated with the franchise agreement and any collateral agreements. This includes any penalties for late payment of these duties and taxes.

In practical terms, this means that a prospective Chatime franchisee needs to factor in these additional costs when budgeting for their initial investment and ongoing operational expenses. Stamp duties and comparable taxes can vary depending on the jurisdiction, so it's important to research the specific rates and regulations applicable to the franchisee's location. Collateral agreements, which are agreements related to the franchise agreement, may also be subject to these taxes, adding to the franchisee's financial obligations.

This allocation of responsibility is fairly standard in franchising, where franchisees typically bear the burden of taxes and duties related to their business operations. However, it's crucial for prospective Chatime franchisees to understand the potential impact of these costs on their profitability and to seek professional advice to ensure compliance with all applicable tax laws.