Does the Chatime definition of 'Intellectual Property' include copyright in advertising materials provided by the Franchisor?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
anchisee's lease for the Premises; and (d) any other document produced by the Franchisor from time to time that relates to the occupation of the Premises or the operation and procedure of the Franchised Business, and Franchise Document means any one of the foregoing.
Franchised Business means the Chatime Store Business operated by the Franchisee from the Premises in accordance with the Franchise Documents.
Intellectual Property means the: (a) the Business Names; (b) the Marks; (c) the Confidential Information; (d) the Business System; (e) the Franchise Documents; (f) the Database; (g) the POS Software System; (h) any other forms, documents, patents, patent applications, drawings, discoveries, inventions, improvements, trade secrets, technical data, formulae, computer programs, data bases (but not including the Franchisee Membership Data), know-how, logos, designs, design rights and copyright materials associated with or used in the Franchised Business; (i) existing and future copyright that the Franchisor owns or will own or that is licensed to the Franchisor, in all Manuals, materials or other original works relating to the Business System; (j) the Franchisor's Internet domain name and any Internet home page that the Franchisor may develop; (k) any social media sites operated by the Franchisor using the Franchisor's Marks including, but not limited to, Facebook, Instagram, Twitter, YouTube, LinkedIn and Snapchat; (l) the Franchisor's marketing emblems, logos, promotional materials, advertorials, publications and any other materials imparted to the Franchisee by the Franchisor; and (m) the Corporate Image.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the definition of Intellectual Property includes copyright in advertising materials provided by the franchisor. The FDD specifies that Intellectual Property includes the franchisor's marketing emblems, logos, promotional materials, advertorials, publications and any other materials imparted to the Franchisee by the Franchisor. This means that Chatime retains ownership of the copyright for these advertising materials.
For a prospective Chatime franchisee, this means they are licensed to use these advertising materials but do not own them. They cannot alter or reproduce these materials outside the scope of the franchise agreement without Chatime's express permission. This is a common arrangement in franchising, as it ensures brand consistency and protects the franchisor's marketing efforts.
Furthermore, the franchisee acknowledges that by its use of the Intellectual Property, it does not acquire any right to, title or interest in the Intellectual Property. All rights to, and interests in, the Intellectual Property reside with Franchisor. All documents, advertisements, or other work created by Franchisee in connection with the Franchised Business shall be the property of the Franchisor, and shall be considered "work for hire."