What might a Chatime supplier be required to sign as part of meeting specifications, standards, and requirements?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
shipping, distribution, and all other relevant information with us.
Our criteria for approving suppliers is not available to you or your proposed suppliers. You or the supplier may request approval by submitting a written request to us. We may require that samples from the supplier be delivered to us or to a designated independent testing laboratory for testing prior to approval. All requests will be reviewed in accordance with our then-current procedures and subject to our available resources for review. You or the supplier will be required to reimburse us for all costs that we incur in the testing and approval process whether the supplier is approved or not. The supplier must meet our then-current specifications, standards, and requirements, which may include signing a non-disclosure agreement or a performance guarantee. We may change our specifications, standards, and requirements at any time and there is no limit on our right to do so. If the supplier that you propose is initially approved or disapproved, we will notify you and the supplier within 30 to 60 days depending on the nature of the products or services. We may withdraw our approval at any time if the supplier's performance does not meet our criteria, we change our specifications, standards or requirements, or for other reasons. If an approved supplier's approval is revoked, we will inform you of the revocation and you will cease to use that supplier.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–25)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a supplier might be required to sign a non-disclosure agreement or a performance guarantee to meet Chatime's standards and requirements. Chatime may also require that samples from the supplier be delivered to them or to a designated independent testing laboratory for testing prior to approval. The supplier must demonstrate that it can meet all System specifications, standards, and requirements and has adequate capacity to supply Chatime franchisees' quantity and delivery needs to Chatime's satisfaction.
Chatime notes that the franchisee or the supplier will be required to reimburse Chatime for all costs incurred in the testing and approval process, regardless of whether the supplier is ultimately approved. Chatime will notify the franchisee and the supplier within 30 to 60 days, depending on the nature of the products or services, if the supplier is initially approved or disapproved.
Chatime emphasizes that it may change its specifications, standards, and requirements at any time, and there is no limit on its right to do so. Chatime may also withdraw its approval at any time if the supplier's performance does not meet their criteria, if they change their specifications, standards, or requirements, or for other reasons. If an approved supplier's approval is revoked, Chatime will inform the franchisee of the revocation, and the franchisee must cease using that supplier.