Can the 'Network Name' for Chatime include a replacement name?
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 'Network Name' can include a replacement name. The Network Name is defined as "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 Chatime may use from time to time as the name under which Outlets are operated.
This means that Chatime retains the right to modify or change the brand name under which franchisees operate their outlets. This could involve adding new names, replacing existing ones, or using variations of the current names.
For a prospective franchisee, this clause indicates a degree of flexibility (or potential instability) in the brand's identity. While Chatime may introduce a more appealing or relevant name, franchisees should be aware that they may be required to adopt a new brand name or logo at some point during their franchise term. This could entail costs for rebranding, such as new signage, marketing materials, and other related expenses. Franchisees should seek clarification on how much advance notice Chatime would provide and whether any financial assistance would be offered to offset these rebranding costs.