Is a Chatime developer allowed to establish a website referring to the Chatime marks, outlets, or system without the franchisor's prior written consent?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
5.9 Websites
- (1) Developer must not and must ensure that no other Person establishes a Website referring to the Marks, Outlets or the System without Franchisor's prior written consent.
- (2) Developer 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. Developer 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 Developer's Operation, it must be registered in the name of Franchisor or any other nominee of Franchisor. However, all fees must be paid by Developer.
- (3) Franchisor may, but is not obliged to, designate one or more web pages to describe Developer and/or the Outlets, such web pages to be located within Franchisor's Website.
- (4) If Developer becomes aware of any Person using or referring to the Marks on their Website, then it must immediately notify Franchisor.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a developer is not allowed to establish a website referring to the Chatime marks, outlets, or system without the franchisor's prior written consent. The FDD states that the developer must also ensure that no other person establishes such a website without the franchisor's consent. This restriction is in place to maintain brand consistency and control over online representation of the Chatime brand.
Furthermore, the Chatime developer cannot register any domain name or internet address that incorporates the Network Name, any part of that name, similar names, the Marks, or words similar to the Marks. The FDD clarifies that Chatime has a prior and superior right to register any such domain names. If a domain name or internet address is to be used in the Developer's Operation, it must be registered in the name of Chatime or any other nominee of Chatime, with all fees paid by the Developer.
Chatime may choose to designate webpages within its own website to describe the developer and/or the outlets. If Chatime approves a separate website established by the developer, the developer must submit a sample of the proposed website domain name, format, visible content, and non-visible content for Chatime's prior written approval before establishing the website. The developer cannot use or modify the website without Chatime's prior written approval. This ensures that all online representations of the Chatime brand meet the franchisor's standards and guidelines.
Finally, if the Chatime developer becomes aware of any person using or referring to the Marks on their website, they must immediately notify Chatime. This requirement emphasizes the developer's responsibility in protecting the brand's intellectual property and ensuring compliance with Chatime's online presence standards.