If Chatime Franchisor wants to register intellectual property rights in any of Developer's Improvements, and the Developer is the owner, what actions must the Developer take upon the Franchisor's request?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
(3) If Franchisor wishes to register the intellectual property rights in any of Developer's Improvements and Developer is the owner, or a necessary applicant for that registration, Developer must immediately upon the request by Franchisor apply in Developer's own name for registration and then sign all documents and deeds, perform all acts and do all things necessary to assign that registration or application to Franchisor or its nominee.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, if the Franchisor wants to register intellectual property rights for any Developer's Improvements, and the Developer is the owner or a necessary applicant for registration, the Developer must take specific actions. Upon the Franchisor's request, the Developer is required to apply for registration in their own name.
Following the application, the Developer must sign all necessary documents and deeds. Additionally, they are obligated to perform all acts and complete all tasks necessary to assign the registration or application to Chatime or its nominee.
This clause ensures that Chatime can secure ownership of intellectual property rights related to any improvements the Developer creates, streamlining the registration process and ensuring the transfer of rights to the Franchisor.