What standards must Chatime franchisees adhere to in their advertising practices?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) Franchisee must not use any marketing or promotional materials unless that marketing or promotional material has been first approved in writing by Franchisor.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime FDD, franchisees are required to have written approval from the franchisor before using any marketing or promotional materials. This requirement ensures that all advertising aligns with Chatime's brand standards and marketing strategies.
Chatime collects a Brand Marketing Fee from franchisees, which is used at the franchisor's discretion for advertising and promotional campaigns at the local, regional, or national level. While franchisees contribute to this fund, there is no guarantee that these funds will be specifically allocated to advertising in their particular territory or region.
If a franchisee wants additional marketing assistance beyond what is covered by the Brand Marketing Fee, they must pay Chatime any additional fees and charges invoiced by Chatime for such assistance. This allows franchisees to pursue marketing efforts tailored to their specific needs, provided they obtain approval and cover the associated costs. This is a fairly standard practice in franchising, where franchisors maintain control over brand messaging while allowing franchisees to invest in additional local marketing with franchisor oversight.