Does the definition of 'Chatime Store' require operation under a valid franchise agreement?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
| Subject | Pages |
|---|---|
| 01 | 15 |
| Introduction | |
| 02 | 213 |
| Shaking Tea Up | |
| 03 | 24 |
| Customer Satisfaction | |
| 04 | 78 |
| Store Management | |
| 05 | 104 |
| People Management | |
| 06 | 17 |
| Sanitation and Safety | |
| 07 | 8 |
| Cash Management | |
| 08 | 57 |
| Management Tools | |
| 09 | 7 |
| Delivery System | |
| 10 | 18 |
| Chatime Operation Review | |
| 11 | 26 |
| Tea Knowledge Module | |
| 12 | 20 |
| Total Dissolved Solids (TDS) | |
| Total Pages | 397 |
1. DEFINITIONS
The following definitions apply in this document (this "Agreement"):
Business Name means Chatime any other name or logo associated with operation of the Chatime Store Business as the Franchisor shall notify the Franchisee of in accordance with the terms of the Franchise Documents from time to time.
Business System means the: (a) distinctive image (including characteristics, features presentation and image of a member of the network as portrayed in advertising, marketing and promotions), visual appearance, reputation and presentation of the Franchisor and franchisees in the market; (b) Franchisor name, the Intellectual Property, and the brand names, logos and slogans associated with the Franchisor; (c) goodwill and the business reputation established in the Intellectual Property; (d) business procedures and systems developed by the Franchisor for the operation of the Franchised Business and concerning a consistent high quality approach to customer service, uniform operating techniques and business management generally, including the methods and quality systems included in the Manual; and (e) any other innovations, products or services that the Franchisor may introduce to the Franchisor's franchisees from time to time.
Chatime Store Business means a business operated, including by a franchisee of the Franchisor, using the Business System, Corporate Image, Marks and other Intellectual Property (or any of them).
Chatime Group means the Franchisor and each of its parents, subsidiaries, and affiliates and each of their respective directors, officers, employees, agents and contractors.
Confidential Information means any confidential, commercially sensitive or valuable information belonging to the Franchisor or its affiliates concerning the Franchisor or the Business System and includes, but is not limited to: (a) the provisions of the Franchise Agreement and any subject matter dealt with or contemplated therein;
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime FDD, the definition of 'Chatime Store Business' does not explicitly require operation under a valid franchise agreement. The FDD defines 'Chatime Store Business' as a business operated using the Business System, Corporate Image, Marks, and other Intellectual Property. This definition includes businesses operated by franchisees of the Franchisor.
However, the FDD also references 'Chatime Stores being operated under valid Franchise Agreement' in the context of conduct restrictions for developers. This implies that a 'Chatime Store' can be operated under a franchise agreement.
Furthermore, the definition of 'Franchised Business' means the Chatime Store Business operated by the Franchisee from the Premises in accordance with the Franchise Documents. This suggests that to be considered a 'Franchised Business', the Chatime store must adhere to the terms outlined in the Franchise Documents, which include the Franchise Agreement, Operations Manual, and the Franchisee's lease for the Premises. Therefore, while the term 'Chatime Store Business' itself may not explicitly require a franchise agreement, operating as a 'Franchised Business' does.