Under what conditions can Chatime withdraw approval of a previously approved supplier?

According to Chatime's 2025 Franchise Disclosure Document, Chatime may withdraw approval of a supplier at any time if the supplier's performance does not meet their criteria, if Chatime changes their specifications, standards, or requirements, or for other reasons. If Chatime revokes approval of a supplier, they will inform the franchisee of the revocation, and the franchisee must stop using that supplier.

This policy gives Chatime broad discretion over supplier approvals, allowing them to ensure quality and consistency across the Chatime system. However, it also means that a franchisee could be forced to switch suppliers with little notice if Chatime changes its standards or is dissatisfied with a supplier's performance. This could potentially disrupt the franchisee's supply chain and increase costs.

Prospective Chatime franchisees should be aware of Chatime's ability to change approved suppliers and the potential impact this could have on their business. It would be prudent to inquire about the frequency with which Chatime has changed suppliers in the past and the typical reasons for such changes. Understanding these factors can help a franchisee better prepare for potential disruptions and manage their supply chain effectively.