Does a Chatime Store have to meet specific standards and specifications set by the Franchisor?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
(a) Offers Products listed on the Chatime Menu for sale;
(b) Meets Franchisor's standards and specifications;
(c) Operates under the Marks and the System; and
(d) Is operated pursuant to a valid franchise agreement.
(13) Confidential Information means:
(a) Plans and specifications for the development of the Outlet;
(14) Recipes, training materials, programs and systems, methods, techniques, formats, specifications, standards, procedures, sales and marketing techniques, computer software programs, statistical data, and knowledge of and experience relating to the development and operation of the Outlet;
(a) Marketing and advertising programs;
(b) Knowledge of specifications for and suppliers of Raw Materials and certain other Products, materials, supplies, equipment, fixtures, furnishings, and services and knowledge of operating results and financial performance of the Outlet;
(c) The Operations Manual (as applicable from time to time), Operations Manual Addendum, and all other materials;
(d) Global Policies and Procedures;
(f) The System Standards;
4.11 Construction of the Outlet
- (1) Franchisee is responsible for the construction and development of the Outlet in accordance with the System Standards. All plans and specifications for the Outlet must, if required by Franchisor, be approved by Franchisor.
- (2) Franchisee must use Franchisor's approved suppliers for real estate and construction management services, construction due diligence, architectural, engineering and design services, construction permit acquisition and management services, and construction site visits, in connection with the construction and development of the Outlet. All construction of the Outlet under this Agreement must be undertaken by competent and licensed building contractors and subcontractors.
4.13 Franchisor's Inspection Rights
Franchisor, its Affiliates, consultants, and agents have the right to inspect the Outlet and the construction work from time to time during the course of construction to verify the progress of construction and Franchisee's compliance with the terms of this Agreement.
3.8 Compliance with the System
Developer agrees to diligently and continuously monitor compliance with the System and System Standards, to strictly enforce compliance with the System and System Standards by all Chatime Stores operated by Developer in the Development Area.
3.9 Customer Complaint System
Developer must establish a customer complaint system to redress all customer complaints. Such system must be approved by Franchisor.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a Chatime store must adhere to specific standards and specifications set by the franchisor. To operate under the Chatime brand, stores must offer products listed on the Chatime Menu for sale, meet Chatime's standards and specifications, operate under the brand's trademarks and systems, and operate under a valid franchise agreement. These standards are further detailed in confidential information provided by Chatime, including plans and specifications for the store's development, recipes, training materials, operational methods, techniques, formats, specifications, and standards.
Chatime also provides knowledge of approved suppliers for raw materials, products, equipment, and services, as well as operational results and financial performance data. The Operations Manual, Operations Manual Addendum, Global Policies and Procedures, and System Standards all contribute to defining these standards. Franchisees must also construct and develop their outlets in accordance with Chatime's System Standards, and all plans and specifications may require Chatime's approval. Approved suppliers must be used for real estate, construction management, architectural, engineering, design, and permit acquisition services.
Chatime retains the right to inspect the outlet and construction work to ensure compliance with the franchise agreement. Furthermore, developers must diligently monitor and enforce compliance with the System and System Standards across all Chatime stores they operate within their development area. This includes establishing a customer complaint system approved by Chatime. Overall, Chatime maintains significant control over the standards and specifications of its stores to ensure consistency and quality across the brand.