Can Chatime change the 'Network Name' under which Outlets are operated?

According to Chatime's 2025 Franchise Disclosure Document, Chatime has the authority to modify the 'Network Name' under which its outlets operate. The 'Network Name' is defined as "Chatime" and "日出茶太", including variations, additions, or replacements that Chatime may use over time. This gives Chatime the flexibility to rebrand or modify its brand name as it sees fit.

For a prospective franchisee, this means that the brand name they initially invest in may not remain the same throughout the term of their franchise agreement. While Chatime's right to change the name provides adaptability for the franchise system, it also carries potential risks for franchisees. A name change could impact brand recognition, marketing strategies, and customer loyalty, potentially requiring franchisees to invest in new signage, marketing materials, and training programs to align with the updated brand identity.

It is important for prospective franchisees to understand that Chatime retains control over the brand's identity and has the right to make changes that it deems necessary for the overall success of the franchise system. Franchisees should inquire about Chatime's history of brand changes, its strategy for implementing such changes, and the support it provides to franchisees during rebranding initiatives. Understanding these aspects can help franchisees prepare for potential shifts in brand identity and mitigate any negative impacts on their business.