Can Chatime change the 'Network Name' from time to time?

According to Chatime's 2025 Franchise Disclosure Document, Chatime has the right to change the 'Network Name' from time to time. The 'Network Name' is defined as "Chatime" and "日出茶太" or variations, additions, or replacements that Chatime may use for its outlets. This means that Chatime franchisees must be prepared for the possibility that the brand name or associated logos could change during the term of their franchise agreement.

This flexibility allows Chatime to adapt its branding to market trends or to address any legal or competitive issues that may arise. For a franchisee, this means they may need to update signage, marketing materials, and other branded items to reflect the new 'Network Name' or logos. While the FDD does not specify who bears the cost of these changes, it is a point worth clarifying with Chatime during the due diligence process.

It is typical in franchising for franchisors to retain control over branding and trademarks, as consistency is important for maintaining brand recognition and value. However, franchisees should understand the potential implications of a brand name change, including the cost and effort involved in updating their business to reflect the new branding. Franchisees should seek clarification from Chatime regarding the process and potential costs associated with any such changes.