Is the 'Domain Name' considered part of the 'Intellectual Property' for a Chatime franchise?
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, domain names are explicitly considered part of the brand's intellectual property. The FDD defines 'Intellectual Property' to include, among other things, the 'Franchisor's Internet domain name'. This means that Chatime owns and controls its domain name, and franchisees are granted rights to use it within the scope of their franchise agreement.
Furthermore, franchisees are restricted from registering domain names that are similar or identical to Chatime's intellectual property. Specifically, franchisees must not register a '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.' This restriction ensures that franchisees do not create confusion in the marketplace or infringe upon Chatime's established brand identity.
If a franchisee happens to own a domain name similar to Chatime's intellectual property at the start of their agreement or registers one during the term, they are obligated to transfer ownership of that domain name to Chatime at the franchisee's own cost. This requirement underscores the importance of protecting Chatime's intellectual property and preventing unauthorized use of its brand assets. This also means that goodwill associated with the Intellectual Property inures to the benefit of Chatime.