What intellectual property does Chatime retain regarding franchisee point of sale data?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
anchisee's lease for the Premises; and (d) any other document produced by the Franchisor from time to time that relates to the occupation of the Premises or the operation and procedure of the Franchised Business, and Franchise Document means any one of the foregoing.
Franchised Business means the Chatime Store Business operated by the Franchisee from the Premises in accordance with the Franchise Documents.
Intellectual Property means the: (a) the Business Names; (b) the Marks; (c) the Confidential Information; (d) the Business System; (e) the Franchise Documents; (f) the Database; (g) the POS Software System; (h) any other forms, documents, patents, patent applications, drawings, discoveries, inventions, improvements, trade secrets, technical data, formulae, computer programs, data bases (but not including the Franchisee Membership Data), know-how, logos, designs, design rights and copyright materials associated with or used in the Franchised Business; (i) existing and future copyright that the Franchisor owns or will own or that is licensed to the Franchisor, in all Manuals, materials or other original works relating to the Business System; (j) the Franchisor's Internet domain name and any Internet home page that the Franchisor may develop; (k) any social media sites operated by the Franchisor using the Franchisor's Marks including, but not limited to, Facebook, Instagram, Twitter, YouTube, LinkedIn and Snapchat; (l) the Franchisor's marketing emblems, logos, promotional materials, advertorials, publications and any other materials imparted to the Franchisee by the Franchisor; and (m) the Corporate Image.
Intellectual Property Rights means: (a) patents, copyright, registered and unregistered design rights, registered and unregistered trademarks, rights in know-how and confidential information and all other intellectual and industrial property rights (without limitation); (b) all similar or analogous rights existing under the laws of any country; and (c) all rights to apply for or register such rights.
Manual means the operations manuals and documents produced by the Franchisor and accessible via the internet specifying in greater detail aspects of the Business System and the Franchisor's standards as amended from time to time.
Marks means the Name, trademarks, service marks, and such other registered or unregistered trade names, trademarks, logos, symbols, internet domain names, web site identifiers, colour schemes, layout and design or items used to identify or promote the Franchised Business by the Franchisor as designated from time to time.
Member means any person who registers as a member of the Franchised Business.
Name means the name "Chatime" and"日出茶太" and includes such other names or Marks that the Franchisor may substitute, amend or vary from time to time.
Permitted Purpose means the operation of the Franchised Business by the Franchisee in accordance with the terms of the Franchise Agreement.
Premises means the location identified for the operation of the Franchised Business in the Franchise Agreement.
Products means the products offered by the Franchised Business or other Chatime Store Businesses.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Chatime retains significant intellectual property rights related to the point of sale (POS) system used by franchisees. The definition of "Intellectual Property" includes the POS Software System and any other databases associated with or used in the Franchised Business, but specifically excludes the Franchisee Membership Data. This means that while Chatime owns the POS system software and general data collected, the franchisee retains ownership of their specific customer membership data.
Chatime requires franchisees to use a POS system that is nominated or approved by Chatime, ensuring standardization across all locations. Franchisees must also maintain constant connectivity to allow all data generated by the POS system to be captured by Chatime's central polling server. The franchisee is responsible for all initial and ongoing costs associated with this data capture, adhering to payment procedures outlined in the Operations Manual or Global Policies and Procedures.
Furthermore, franchisees must transfer ownership of any intellectual property they own that is similar or identical to Chatime's intellectual property to Chatime at the franchisee's own cost. This includes business names, trademarks, and domain names. Franchisees are also prohibited from registering any intellectual property similar to Chatime's without written consent. This ensures that Chatime maintains control over its brand and system-wide data, while franchisees are responsible for the costs of implementing and maintaining the data collection system.