Can the 'Network Name' for Chatime be changed by the Franchisor?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (43) Network Name means the name "Chatime" and "日出茶太" or such variation to "Chatime" and "日出茶太" or such additional or replacement name or logos as Franchisor may from time to time use as the name under which Outlets are operated.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the franchisor has the authority to modify the 'Network Name'. The 'Network Name' is defined as "Chatime" and "日出茶太", including any variations, additions, or replacements that Chatime may use for its outlets. This means that Chatime retains control over its brand identity and can make changes to the name under which the outlets operate.
For a prospective franchisee, this implies that the name they initially franchise under may not remain the same throughout the term of the agreement. Chatime could introduce a new name or modify the existing one. While this provides Chatime with the flexibility to adapt to market changes or rebranding strategies, it also means that franchisees must be prepared to update their signage, marketing materials, and other branding elements to align with any changes to the 'Network Name'.
This ability to change the 'Network Name' is not uncommon in franchising, as franchisors often need to evolve their brand to stay competitive. However, it's important for franchisees to understand that such changes can involve costs and effort on their part to implement the new branding. Franchisees should seek clarification from Chatime regarding the frequency and potential impact of such changes, as well as any support that Chatime might offer to help franchisees adapt to a new 'Network Name'.