If a domain name is used in the Chatime Franchised Business, in whose name must it be registered?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
7.4 Websites
- (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, if a domain name or internet address is used for the Chatime franchised business, it must be registered in the name of Chatime or any other nominee that Chatime designates. However, the franchisee is responsible for paying all fees associated with the domain name registration.
This means that while a franchisee might operate a website for their specific Chatime location, they cannot independently register a domain name that uses the Chatime name or trademarks. Chatime maintains control over its brand's online presence, ensuring uniformity and protecting its intellectual property.
While franchisees do not have ownership of the domain name, they are responsible for covering the costs associated with it. This includes initial registration fees and any ongoing costs to maintain the domain. This arrangement allows Chatime to control the brand's online identity while franchisees contribute to the financial upkeep of their online presence.