Is a Chatime franchisee allowed to establish a website referring to the Marks, the Outlet, or the System without prior written consent from the Franchisor?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Franchisee must not establish a website referring to the Marks, the Outlet, or the System without Franchisor's prior written consent.
- (2) Franchisee 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. Franchisee 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 The Franchised Business, it must be registered in the name of Franchisor or any other nominee of Franchisor. However, all fees must be paid by Franchisee.
- (3) Franchisor may, but is not obliged to, designate one or more webpages to describe Franchisee and/or the Outlet, such webpages to be located within Franchisor's Website. If Franchisor approves a separate Website to be established by Franchisee, then:
Before establishing the Website, Franchisee must submit to Franchisor, for Franchisor's prior written approval, a sample of the proposed Website domain name, format, visible content (including, without limitation, proposed screen shots), and non-visible content (including, without limitation, metatags) in the form and manner that Franchisor may reasonably require; and Franchisee must not use or modify such Website without Franchisor's prior written approval as to such proposed use or modification;
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a franchisee is not allowed to establish a website referring to the Marks, the Outlet, or the System without first obtaining written consent from Chatime. This restriction ensures that all online representations of the brand meet Chatime's standards and maintain a consistent brand image.
The FDD also states that a franchisee cannot register a domain name or internet address that includes the Network Name, any part of that name, similar names, the Marks, or similar words without Chatime's permission. Chatime asserts that it has a prior and superior right to register such domain names. If a domain name or internet address is used for the franchised business, it must be registered in Chatime's name or the name of their nominee, although the franchisee is responsible for paying all fees associated with the registration.
Chatime may choose to create webpages describing the franchisee or the outlet on Chatime's website. If Chatime approves a separate website for the franchisee, the franchisee must submit a sample of the proposed website domain name, format, visible content (including screenshots), and non-visible content (including metatags) for Chatime's prior written approval. The franchisee cannot use or modify the website without Chatime's prior written approval.
These stipulations are typical in franchising, as franchisors like Chatime need to protect their brand identity and ensure uniformity across all franchise locations, including their online presence. This control helps maintain customer trust and brand recognition.