In what year did Chatime establish the brand fund?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
31, 2024, four franchisees accounted for approximately 94% of the Company's accounts and franchise fees receivable.
NOTE 7. BRAND FUND
Pursuant to the structured form of the franchising arrangement, the Company reserves the right to collect marketing fund fees of up to 2% of franchisees' gross sales. These funds are to be spent solely on advertising and related expenses for the benefit of the franchisees with a portion designated to offset the Company's administrative costs to administer the funds, all at the discretion of the Company. The Company established the brand fund in 2024, currently charging 2%, and collected $16,777 for the year ended December 31, 2024, which is includ
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the brand fund was established in 2024. Chatime reserves the right to collect marketing fund fees of up to 2% of franchisees' gross sales.
The funds collected are designated to be spent solely on advertising and related expenses for the benefit of the franchisees. A portion of the funds may be used to offset Chatime's administrative costs to administer the funds.
In 2024, Chatime collected $16,777 for the brand fund. This amount is included in "Royalties and marketing fund fees" in the accompanying statements of operations and member's equity (deficit).