Does Chatime have a specific date for repayment of advances to and from the Member?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
ified as noncurrent liabilities. There were no amounts due to affiliates at December 31, 2023.
Due to/from member
In the ordinary course of business, the Company periodically advances funds to and receives funds from the Member of the Company. No interest is charged on these advances. Advances to and from the Member are noninterest bearing and have no specific date for repayment. The balance due from Member amounted to $20,108 and $300,000 at December 31, 2024 and 2023, respectively. Management expects these balances to be settled within the next year. The balance due to Member amounted to $60,015 and $- at De
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, advances between Chatime and its Member are handled without specific repayment dates. These advances are made in the ordinary course of business, with no interest charged. At the end of 2024, the balance due from the Member was $20,108, while the balance due to the Member was $60,015.
Chatime's management anticipates that the $20,108 due from the Member will be settled within the next year. However, the $60,015 owed to the Member is not expected to be settled within the same timeframe.
This arrangement indicates that Chatime has some flexibility in managing its finances with its Member, but it also introduces uncertainty regarding when these balances will be cleared. Prospective franchisees should be aware of these related-party transactions, as they could potentially impact the financial stability and operations of the company. It would be prudent to inquire with Chatime about the typical duration for settling such advances and the factors that might influence these timelines.