What must I discontinue using immediately upon termination or expiration of my Chatime franchise agreement?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that upon the termination or expiration of this Agreement, it will:
- (1) Not directly or indirectly identify itself as a current or former franchisee of, or as otherwise associated with, Franchisor;
- (2) Immediately deliver to Franchisor:
- (a) All copies of the Operations Manual, the Operations Manual Addendum, and Global Policies and Procedures (contained in any medium) and once delivered to Franchisor, uninstall and permanently delete any copies of the Operations Manual, the Operations Manual Addendum, and Global Policies and Procedures electronically stored by Franchisee;
- (b) All forms, stationery, business cards, advertising material, and any other printed matter and signs used by Franchisee which bear the Network Name or any of the Marks;
- (c) The original and all copies of databases and all lists held by Franchisee of suppliers to the Network; and
- (d) All other property of Franchisor;
- (3) Immediately discontinue use of and forever cease to use:
- (a) The Network Name;
- (b) Any trade name, trademark, or commercial symbol that suggests or indicates a connection or association with Franchisor;
- (c) The Marks, Confidential Information, and other Intellectual Property and remove all signs containing any Marks or any marks deceptively similar to the Marks (including from any Outlets) and promptly return to Franchisor or destroy all forms and materials containing any Mark, in accordance with Franchisor's instructions; and
- (d) Any Mark, trade name, trademark, or commercial symbol that is deceptively similar to any Mark in any manner or for any purpose;
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, a franchisee must immediately discontinue using several items. This includes refraining from identifying oneself as a current or former Chatime franchisee or as being associated with Chatime in any way.
Specifically, the franchisee must cease using the Chatime Network Name, any trade name, trademark, or commercial symbol that suggests a connection with Chatime. This extends to the Marks, Confidential Information, and other Intellectual Property of Chatime. All signs containing any Marks or anything deceptively similar must be removed from the premises, including any Outlets. All forms and materials containing any Mark must be promptly returned to Chatime or destroyed, following Chatime's instructions.
Furthermore, the franchisee is prohibited from using any Mark, trade name, trademark, or commercial symbol that is deceptively similar to any Chatime Mark in any manner or for any purpose. These restrictions are typical in franchising to protect the brand's identity and goodwill after a franchise agreement ends.