Who is responsible for paying the fees for domain name registration used in the Chatime Franchised Business?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
7.4 Websites
- (1) Franchisee must not establish a website referring to the Marks, the Outlet, or the System without Franchisor's prior written consent.
- (2) Franchisee must not register the Domain Name or any other domain name or Internet address incorporating the Network Name or any part of that name or any similar names or any of the Marks or any part of the Marks or any words or names similar to the Marks. Franchisee acknowledges that Franchisor has a prior and superior right to registration of any such domain names. If a domain name or Internet address is to be used in The Franchised Business, it must be registered in the name of Franchisor or any other nominee of Franchisor. However, all fees must be paid by Franchisee.
- (3) Franchisor may, but is not obliged to, designate one or more webpages to describe Franchisee and/or the Outlet, such webpages to be located within Franchisor's Website. If Franchisor approves a separate Website to be established by Franchisee, then:
Before establishing the Website, Franchisee must submit to Franchisor, for Franchisor's prior written approval, a sample of the proposed Website domain name, format, visible content (including, without limitation, proposed screen shots), and non-visible content (including, without limitation, metatags) in the form and manner that Franchisor may reasonably require; and Franchisee must not use or modify such Website without Franchisor's prior written approval as to such proposed use or modification;
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the franchisee is responsible for paying the fees for domain name registration if a domain name or internet address is to be used in the franchised business. However, the domain name must be registered in the name of Chatime or any other nominee of Chatime.
This means that while Chatime retains control over the domain name and its registration, ensuring brand consistency and uniformity across all franchise locations, the financial burden of registering and maintaining the domain falls on the franchisee. This is a common practice in franchising, where the franchisor manages the brand's online presence but franchisees contribute to the associated costs.
Prospective Chatime franchisees should factor in these domain name registration fees as part of their initial and ongoing operating expenses. It is important to clarify with Chatime what these fees might amount to on an annual basis and what procedures are in place for domain name registration and renewal.