What actions must a Chatime franchisee take if Chatime revokes approval for their separate website?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
7.4 Websites
- (1) Franchisee must not establish a website referring to the Marks, the Outlet, or the System without Franchisor's prior written consent.
- (2) Franchisee must not register the Domain Name or any other domain name or Internet address incorporating the Network Name or any part of that name or any similar names or any of the Marks or any part of the Marks or any words or names similar to the Marks. Franchisee acknowledges that Franchisor has a prior and superior right to registration of any such domain names. If a domain name or Internet address is to be used in The Franchised Business, it must be registered in the name of Franchisor or any other nominee of Franchisor. However, all fees must be paid by Franchisee.
- (3) Franchisor may, but is not obliged to, designate one or more webpages to describe Franchisee and/or the Outlet, such webpages to be located within Franchisor's Website. If Franchisor approves a separate Website to be established by Franchisee, then:
Before establishing the Website, Franchisee must submit to Franchisor, for Franchisor's prior written approval, a sample of the proposed Website domain name, format, visible content (including, without limitation, proposed screen shots), and non-visible content (including, without limitation, metatags) in the form and manner that Franchisor may reasonably require; and Franchisee must not use or modify such Website without Franchisor's prior written approval as to such proposed use or modification;
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a franchisee must first obtain written consent from Chatime before establishing a website that refers to Chatime's marks, the outlet, or the system. If Chatime approves a separate website for the franchisee, the franchisee must submit a sample of the proposed website domain name, format, visible content, and non-visible content for Chatime's prior written approval. The franchisee cannot use or modify the website without Chatime's prior written approval regarding the proposed use or modification.
This means that Chatime retains control over the franchisee's online presence and branding. A prospective franchisee should understand that they cannot independently create or alter a website associated with their Chatime franchise without express permission from Chatime. This requirement ensures brand consistency and quality control across all online representations of the Chatime brand.
If Chatime revokes approval for a franchisee's separate website, the franchisee would be obligated to immediately take down the website and cease using the domain name. Failure to comply could result in a breach of the franchise agreement, potentially leading to penalties or termination of the franchise agreement. Franchisees should maintain open communication with Chatime regarding their website and online marketing efforts to ensure compliance and avoid any potential issues.