How is the Royalty calculated for a Chatime franchise?

According to Chatime's 2025 Franchise Disclosure Document, the royalty fee is calculated as 5% of Gross Sales. This means that as a Chatime franchisee, you will be required to pay 5% of your total revenue to the franchisor on a regular basis.

Gross Sales is not explicitly defined in this excerpt, but it generally refers to all revenue generated by the franchise location before any deductions for expenses. It is important to understand what constitutes Gross Sales, as this will directly impact the amount of royalty fees you owe.

Prospective franchisees should clarify with Chatime what specific items are included and excluded from Gross Sales to accurately forecast royalty payments. Understanding the full scope of what contributes to Gross Sales is crucial for managing your franchise's finances and ensuring compliance with the franchise agreement.