If a domain name is used in a Chatime developer's operation, in whose name must it be registered?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, if a domain name or internet address is used in a developer's operation, it must be registered in the name of Chatime or any other nominee of Chatime. However, the developer is responsible for paying all fees associated with the registration.
This requirement ensures that Chatime maintains control over its brand and online presence. By registering domain names in its own name or that of a nominee, Chatime can prevent developers from using domain names that could potentially harm the brand or create confusion for customers. This is a common practice in franchising, as franchisors typically want to ensure consistent branding and marketing across all franchise locations.
For a prospective Chatime developer, this means that while they may need a domain name for their specific location or operations, they will not own that domain name. Instead, Chatime will retain ownership, and the developer will simply be authorized to use it. It is important for developers to factor in these domain registration fees as part of their overall operating costs.