Under the Chatime franchise agreement, in what currency must payments be made to the Franchisor?

According to Chatime's 2025 Franchise Disclosure Document, payments to Chatime under the Franchise Agreement must be made in U.S. Dollars, unless Chatime specifies otherwise. However, the initial calculation of these payments is to be done in the currency of the territory where the Chatime franchise is located. This amount is then converted into U.S. Dollars for the actual payment to Chatime. The currency exchange rate used for this conversion will be the rate that Chatime specifies on the date the payment is due.

If a franchisee remits payment after the due date, the currency exchange rate used will be the greater of either the rate on the original due date or the rate on the date the payment is actually sent. This condition incentivizes franchisees to make timely payments to avoid potentially higher exchange rates, which could increase the amount they owe in U.S. Dollars.

All payments to Chatime must be made in full, without any deductions for bank charges. Payments are to be made via direct deposit into Chatime's bank account, as detailed in Schedule 1, Section 7, or through another method Chatime specifies in writing. This may include direct debit from the franchisee's bank or credit account, for which the franchisee must complete any necessary authorization forms. Franchisees are also responsible for obtaining any necessary consents or authorizations to ensure payments in U.S. Dollars can be made on time. If legal restrictions prevent the purchase or transfer of U.S. Dollars, the franchisee must notify Chatime immediately, and Chatime may then require payment in another currency or allow the franchisee to deposit the amount due in a designated account within the territory.