Does Chatime place any restrictions on franchisees soliciting or accepting orders outside of their designated territory?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
There are no restrictions on your soliciting or accepting orders outside your Territory. However, we retain the sole right to use our trademarks on the Internet, including in connection with websites, domain names, directory addresses, metatags, as graphic images on webpages, linking, advertising, co-branding, and other arrangements. You may not maintain a website or social media accounts without our prior written consent. If we do ever approve of a website that you promote and develop, we have the right to condition our approval on the terms that we determine are necessary, such as requiring that your domain name and home page belong to us and be licensed to you for your use during the term of your agreement.
Source: Item 12 — Territory (FDD pages 35–38)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, there are no restrictions on franchisees soliciting or accepting orders outside of their designated territory. However, Chatime retains the sole right to use its trademarks on the Internet, including websites, domain names, and social media. Franchisees must obtain prior written consent from Chatime to maintain a website or social media accounts. If Chatime approves a franchisee's website, it has the right to set the terms, potentially requiring the domain name and home page to belong to Chatime and be licensed back to the franchisee during the term of the agreement.
This policy allows Chatime franchisees to pursue customers beyond their immediate territory, which could increase sales and brand awareness. However, franchisees must be careful not to infringe on Chatime's online presence and branding. The requirement for Chatime's approval and potential ownership of the franchisee's website ensures brand consistency and control over online marketing efforts.
This type of arrangement is not uncommon in franchising, as franchisors often want to maintain control over their brand's image and online presence. Prospective Chatime franchisees should carefully consider these restrictions and ensure they are comfortable with Chatime's control over their online activities. They should also inquire about the specific criteria Chatime uses to evaluate website and social media requests to understand the approval process and potential limitations.