Does the Landlord consent to the Tenant's use of the Chatime Franchisor's marks and signs?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- Use Clause. The Leased Premises shall be used solely for the operation of a Chatime Store and identified by the mark Chatime or such other name as may be specified by Franchisor. Landlord acknowledges that such use shall not violate any then-existing exclusive rights granted to any existing tenant of Landlord. Landlord consents to Tenant's use of Franchisor's marks and signs, décor items, color schemes and related components of Franchisor's proprietary system. Landlord further acknowledges that during the term of this Lease or any extension thereof, Landlord will not lease space to another business in the same building, shopping center or facility as the Leased Premises which serves primarily bubble tea or other specialized tea drinks.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, the landlord consents to the tenant's (franchisee's) use of Chatime's marks and signs. Specifically, the lease agreement stipulates that the premises will be used solely for the operation of a Chatime store, identified by the Chatime mark or another name specified by the franchisor. The landlord's consent ensures that the franchisee can legally display Chatime's branding, décor, color schemes, and other proprietary elements. This consent is a prerequisite for Chatime approving the location.
This agreement also includes a clause preventing the landlord from leasing space to another business that primarily serves bubble tea or similar specialized tea drinks within the same building or shopping center during the lease term or any extensions. This protects the Chatime franchisee from direct competition within their immediate vicinity. The landlord acknowledges that Chatime requires these lease modifications as a condition of approving the site for the franchised business.
Furthermore, the lease addendum emphasizes the importance of the agreement between Chatime, the tenant, and the landlord. It states that a condition for Chatime's approval of the tenant's location is that the lease for the premises designated for the Chatime store contains the agreements set forth in the addendum. This highlights the franchisor's active role in ensuring that the lease terms support the Chatime brand and the franchisee's business operations.