If Chatime wishes to register intellectual property rights in a developer's improvements, what actions is the developer required to take?
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 Chatime wants to register intellectual property rights for any improvements made by a developer, the developer has specific obligations. If the developer owns or is a necessary applicant for the registration of these intellectual property rights, they must immediately apply for registration in their own name upon Chatime's request.
Following the application, the developer is required to sign all necessary documents and deeds. They must also perform all actions and complete all tasks needed to assign the registration or application to Chatime or its designated nominee. This ensures that Chatime can secure the intellectual property rights to the developer's improvements.
This requirement protects Chatime's interests in any intellectual property developed within its system, even if the initial creation or improvement comes from a developer. It is a fairly standard practice in franchising to ensure the franchisor maintains control over the brand and system's intellectual property. A prospective Chatime developer should understand these obligations and be prepared to comply with them to maintain a good working relationship with the franchisor.