Within what timeframe will Chatime notify a franchisee and supplier if a proposed supplier is approved or disapproved?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
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, if a franchisee or supplier requests approval of a supplier, Chatime will notify both parties of the approval or disapproval decision within 30 to 60 days. The specific timeframe depends on the nature of the products or services being supplied.
This indicates that Chatime maintains a degree of control over its supply chain, ensuring that all suppliers meet their standards. This process is in place to maintain consistency and quality across all Chatime locations. However, the franchisee or supplier will be required to reimburse Chatime for all costs incurred during the testing and approval process, regardless of whether the supplier is ultimately approved.
It is important to note that Chatime may change its specifications, standards, and requirements at any time, and there is no limit to their right to do so. Chatime may also withdraw 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, and the franchisee must cease using that supplier.