Who is responsible for the payment of all initial and ongoing technology costs associated with a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
r. We will have independent access to this information. You will be responsible for the payment of all initial and ongoing costs associated with the technology stack and with any associated payment procedures we specify from time to time in the Operations Manual or our Global Policies and Procedures. (Clause 4.14 of the Franchise Agreement).
Neither we nor our affiliates have any obligation to provide ongoing maintenance, repairs, upgrades, or updates to the point-of-sale systems or other computer systems you. You may negotiate terms with a third-party supplier that we approve. We may require you to upgrade or update any point-of-sale system or computer system to one we designate if we decide that such upgrade or update will be in the best interests of the brand and our franchise network. There are no contractual limitations on the frequency or cost of this obligation.
We may change the components of the technology stack from time to time in order to optimize in location operations and customer experience. We may require you to upgrade or update any point- of-sale system or computersystem to one we designate if we decide thatsuch upgrade or update will be in the best interests of the brand and our franchise network. There are no contractual limitations on the frequency or cost of this obligation.
Fees are payable for each element of the technology stack either to the designated supplier directly or to us if so designated.
We estimate the monthly license fees payable for the technology stack to range from $700 to $950.
The specific fee can vary further if you elect to utilize certain additional optional extras, features or touchpoints.
Post-Opening Obligations
The following are our obligations during the operation of your franchised Chatime Store:
- (1) We will provide you with a required series of ongoing competency based training, for you, your senior managers, and any guarantors throughout the term of your agreement. Training will be conducted either in person, digitally or a combination of blended learning. All such training will be conducted in English. If you fail to meet the approved training programs in a timely manner, we will provide additional training at your cost at a location within your Territory or at such other location we determine. You will pay us reasonable compensation and reimburse us for all associated costs and expenses including, without limitation, costs for compensation, travel, accommodations, and meals, upon your receipt of our invoice. (Clause 3.3 of the Franchise Agreement).
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 27–35)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the franchisee is responsible for the payment of all initial and ongoing costs associated with the technology stack and any associated payment procedures specified by Chatime in the Operations Manual or Global Policies and Procedures. This includes ensuring that connectivity is maintained at the Chatime store to allow data generated by the point-of-sale system to be captured by Chatime's central polling server.
The technology stack includes components such as the Revel point of sale system, customer-facing self-serve kiosk, digital menu board and supporting software, Olo delivery aggregator middleware, Como Chatime digital application and CRM, and Deputy time and attendance and rostering software. The cost of purchasing or leasing these systems is estimated to be $10,500 to $14,000. Additionally, the franchisee can expect to pay monthly license fees for the technology stack, estimated to range from $700 to $950, with the specific fee varying based on any additional optional extras, features, or touchpoints the franchisee chooses to utilize.
Chatime retains the right to change the components of the technology stack to optimize location operations and customer experience, and may require franchisees to upgrade or update point-of-sale or computer systems. There are no contractual limitations on the frequency or cost of these required upgrades or updates. While Chatime does not have an obligation to provide ongoing maintenance, repairs, upgrades, or updates to the point-of-sale systems, franchisees may negotiate terms with an approved third-party supplier.
Furthermore, the franchisee is solely responsible for full liability for PCI compliance and data protection. This means the franchisee must comply with all applicable data protection laws relevant to their state, county, territory, and region, as well as Chatime's data processing and data privacy policies set forth in the Operations Manual. They must also comply with the standards established by PCI-DSS to protect the security of credit card information.