Can Chatime acquire and operate businesses under different trademarks in or outside my Chatime Development Area?

According to Chatime's 2025 Franchise Disclosure Document, Chatime retains the right to acquire and operate businesses under different trademarks both within and outside a franchisee's Development Area. Specifically, Chatime can directly or indirectly acquire and continue to operate any business using different trademarks, regardless of location. They can also acquire the rights and obligations of any franchisor or licensor of a similar business operating under different trademarks, again without geographic limitation.

This means that a Chatime franchisee's Development Area does not prevent Chatime itself from owning or operating other types of businesses, even those similar to Chatime, under different brand names. These businesses could potentially compete with the franchisee's Chatime store.

This clause highlights that the rights granted to a Chatime franchisee are limited. While the franchisee has the right to operate Chatime stores within their Development Area, Chatime retains broad rights to operate other businesses, even competing ones, under different trademarks. This is a common practice in franchising, where the franchisor seeks to maintain flexibility and control over its brand and market presence.