From the filings
Software purchasing at Chatime USA is controlled at the headquarters level, with key decision-makers including Chairman Henry Wang and President Kent Wang. The franchise mandates a designated or approved point-of-sale system, creating a clear integration gate. With 10 franchised units, the addressable market is small but concentrated under a single master franchise structure.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
4%of gross sales (FY2022)
15% reference
Franchisor behaviours
21 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 11 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We will have independent access to this information and there are no contractual limitations on our access to your data.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Within 90 days after the end of the Financial Year, financial statements of Master Franchisee including an audited Financial Year-end balance sheet for Master Franchisee and an audited profit and loss account for such Financial Year reflecting all year-end adjustments, and an audited statement of changes in financial…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesFranchise agreement
Franchisor may itself be an Approved Supplier.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 11
We may require you to upgrade or update any point-of-sale system or computer system to one we designate.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
464727.37Item 8
Our parent La Kaffa received $464,727.37 from required purchases or leases by franchisees.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We and La Kaffa derive revenue or other material consideration as a result of required purchases or leases by franchisees.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
95Item 8
We estimate that your required purchases from approved suppliers will represent over 95% of the total purchases for establishing and operating an Outlet.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
You or the supplier may request approval by submitting a written request to us.
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
Comply with all reasonable directions given by Franchisor from time to time in relation to the administration of the Local Marketing Expenditure and in relation to the content, style, nature or manufacture of any advertising, sales promotion and customer satisfaction surveys;
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisor and its agents may at any time during normal Business Hours inspect, audit and make copies or extracts of the records and reports described in clauses 5.5(1) and 5.5(2) and any other business records, bookkeeping and accounting records, electronic records and files, value added, sales, use and service and…
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 11
We may change the Operations Manual at any time in our discretion.
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
Master Franchisee must not establish, nor permit any Franchisee to establish, an Outlet without first obtaining the written approval of Franchisor.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
Master Franchisee must not and must ensure that neither its Franchisees nor any other Person establishes a Website referring to the Marks, Outlets or the System without Franchisor’s prior written consent.
Operations
Must the franchisee buy products from a designated distributor?
YesFranchise agreement
Unless otherwise provided in writing by Franchisor, Master Franchisee must purchase all Raw Materials sold in the Outlets from Franchisor on the then-current Terms of Trade.
Must equipment be purchased from designated or approved suppliers?
YesFranchise agreement
Unless otherwise provided in writing by Franchisor, Master Franchisee must purchase all Raw Materials sold in the Outlets from Franchisor on the then-current Terms of Trade.
People
Does the franchisor require minimum staffing levels or specific roles?
YesFranchise agreement
Master Franchisee must designate a General Manager and Operations and Training Manager, who must be approved by Franchisor.
Must employees wear uniforms specified by the franchisor?
YesItem 16
You may only use products, materials, ingredients, supplies, paper goods, uniforms, fixtures, furnishings, signage, and equipment we approve and you will follow methods of product preparation and delivery that meet our requirements.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesFranchise agreement
Master Franchisee must, and must ensure that all Franchisees, use a point of sale system designated or approved by Franchisor.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have independent access to this information and there are no contractual limitations on our access to your data.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 6
We may charge a reasonable fee for any additional training based on the scope of the training and you will pay the fee upon receipt of our invoice.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
Master Franchisee must ensure that the General Manager and such other key personnel of Master Franchisee, at Master Franchisee’s Cost, attend such meetings and conferences.
Who buys here
The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.
The franchisee/operator personally, or a small franchisor still owner-run. Wears every hat.
Chatime USA presents a compact but specific opportunity for software vendors. The system consists of 10 franchised locations, all operating under a master franchise structure. The number of company-owned units was not disclosed in the 2022 FDD. Average unit volume (AUV) is also not disclosed. The royalty rate is 3.5%, and the initial franchise term is 5 years. Year-over-year unit growth was not reported.
For a vendor, the small footprint means a single deal can cover the entire system. The concentration of decision-making at headquarters simplifies the sales process but raises the stakes—there is no long tail of multi-unit operators to pursue independently. No operators were mapped in our corpus, reinforcing the HQ-centric model.
The 2022 FDD lists four executives in Item 1: Henry Wang (Chairman), Kent Wang (President), Kyle Huang (Director of International Business), and Wendy Wang (Marketing Deputy Director). In a system of this size, technology purchasing authority almost certainly sits with this group. Chairman Henry Wang and President Kent Wang are the most likely final decision-makers for any system-wide software investment. There is no separate CIO or CTO on file, so the executive team likely evaluates technology directly.
Chatime USA mandates a point-of-sale system that must be either designated or approved by the franchisor. POS/Reporting is also listed as a mandated technology category. The FDD does not name specific vendors for these systems. For software vendors, this means any POS-adjacent solution—such as inventory management, labor scheduling, or business intelligence—must integrate with whatever POS the franchisor has approved. The mandate creates a clear gate: you need to understand the incumbent POS to position your tool as complementary or superior.
The FDD does not include an extract for Item 8, so the procurement model—whether designated supplier, approved supplier, or open—is not publicly known from this filing. However, the renewal structure offers timing signals. The initial term is 5 years. To renew, a master franchisee must give written notice between 8 and 12 months before the end of the term, execute a new Master Franchise Agreement, pay a Territory Renewal Fee, and ensure all outlets operating for three or more years are renovated. This renewal window is a natural point at which technology stacks may be re-evaluated. Vendors should calendar outreach 12–18 months before a franchisee's term expiration.
The 2022 Chatime USA FDD is the primary source for the data above. It was filed with state franchise regulators and is available in the embedded viewer below. Key sections for software vendors include Item 1 (executives), Item 11 (mandated technology), Item 8 (procurement obligations, though absent here), and Item 17 (renewal conditions). Reading these sections will give you the factual foundation to build a pitch that speaks directly to Chatime USA's operational reality. For a ranked target list of franchise systems matched to your software category, FranCloud can help.
Questions vendors ask
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View only A one-time purchase: the original filing, yours to keep.
FDD alert
We’ll email you the moment Chatime USA files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Chatime USA’s FDD on file does not disclose a franchisee directory.
Ownership
unknown of la kaffa international.
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Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.