Is a Chatime franchisee permitted to sell or distribute goods or services through the use of the Internet or other electronic communications?

According to Chatime's 2025 Franchise Disclosure Document, a franchisee's ability to sell or distribute goods and services through the internet or other electronic communications is restricted. Generally, franchisees are not permitted to engage in online sales or distribution. However, there is an exception for digital transactions made through Chatime's approved loyalty, delivery aggregator, and brand platforms, as designated by Chatime.

This means that while a Chatime franchisee cannot independently sell products online, they can participate in online sales through platforms approved by Chatime. This allows Chatime to maintain control over its brand and online presence, while still allowing franchisees to benefit from online sales channels. Chatime may also require franchisees to participate in a gift card and loyalty program.

Chatime also retains the sole right to use its trademarks on the Internet, including websites, domain names, and advertising. Franchisees are not allowed to maintain a website or social media accounts without prior written consent from Chatime, and if a franchisee is approved to develop a website, Chatime has the right to set the terms, potentially requiring the domain name and home page to belong to Chatime and be licensed back to the franchisee.

This policy ensures that Chatime maintains control over its online brand presence and customer experience, while franchisees are limited to using approved digital channels. Prospective franchisees should discuss with Chatime the specific approved platforms and any requirements for participating in online sales and marketing initiatives.