factual
When is the Royalty payment due to the Franchisor for a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (60) Royalty means a royalty in the amount of five percent (5%) of Gross Sales.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the royalty fee is 5% of Gross Sales.
The FDD does not specify the exact due date or payment schedule for the royalty fee. The document outlines various fees, such as the New Outlet Fee and Renewal Outlet Fee, but it lacks specific details regarding the timing of royalty payments.
A prospective Chatime franchisee should inquire directly with the franchisor about the specific schedule and method for royalty payments. Understanding these payment terms is crucial for managing cash flow and financial planning.
Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only.
It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.