Does Chatime use franchise brokers to assist in selling franchises?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchisor uses the services of franchise brokers to assist it in selling franchises.
A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise.
Carefully evaluate any information provided by a franchise broker about a franchise.
Do your own investigation by contacting the franchisor's current and former franchisees to ask them about their experience with the franchisor.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Chatime uses franchise brokers to assist in selling franchises. This information is specifically included as a risk factor in the Washington Addendum to the FDD.
For prospective franchisees, this means that Chatime may use franchise brokers who represent Chatime and are paid a fee for referring prospects or selling the franchise. The FDD explicitly advises potential franchisees to carefully evaluate any information provided by a franchise broker and to conduct their own investigation by contacting current and former Chatime franchisees to inquire about their experiences with Chatime.
This is a common practice in the franchise industry, as franchise brokers can help franchisors expand their reach and find qualified candidates. However, it's crucial for prospective franchisees to remember that the broker's primary allegiance is to the franchisor. Therefore, independent verification and due diligence are essential to ensure a well-informed decision.