Does Chatime retain rights to the Domain Name?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and Guarantor must:
- (1) If it is the owner of any intellectual property (e.g., business or corporate names, trademarks, domain names) similar or identical to the Intellectual Property in the Territory, immediately upon execution of this Agreement, take all steps necessary to transfer ownership of that intellectual property to Franchisor at Franchisee's cost;
- (2) If, during the Initial Term, either Franchisee or any Guarantor registers any intellectual property (e.g., business or corporate names, trademarks, domain names) similar or identical to the Intellectual Property in the Territory, the relevant party must immediately upon such registration, take all steps necessary to transfer ownership of that intellectual property to Franchisor at Franchisee's cost; and
- (3) Not, except as otherwise agreed or directed by Franchisor in writing, register any intellectual property (e.g., business or corporate names, trademarks, domain names) similar or identical to the Intellectual Property or that contains or consists of any Intellectual Property or anything that is substantially identical or deceptively similar thereto or otherwise relates to the Chatime brand or the System. In particular, if Franchisee or Guarantor is a corporation, each must not use the word "Chatime" or any other similar word or derivatives of that word in its corporate name, with acknowledgement that the factors determining similarity of trademarks as stated above include, without limitation, the appearances, concepts, pronunciations, designated classes and designated goods and services of trademarks.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Chatime retains rights to intellectual property such as domain names. If a franchisee or guarantor owns any intellectual property, such as domain names, that are similar or identical to Chatime's intellectual property within the territory, they must transfer ownership to Chatime immediately upon execution of the agreement. This transfer is at the franchisee's cost.
Furthermore, if during the initial term of the agreement, a franchisee or guarantor registers any intellectual property, including domain names, that are similar or identical to Chatime's intellectual property, they must also transfer ownership to Chatime immediately upon registration, again at the franchisee's expense. The franchisee or guarantor is prohibited from registering any intellectual property that is similar or identical to Chatime's intellectual property, or that contains or consists of any of Chatime's intellectual property, unless otherwise agreed to in writing by Chatime.
This policy ensures that Chatime maintains control over its brand and online presence. It prevents franchisees from creating domain names or other intellectual property that could confuse customers or dilute the Chatime brand. The franchisee bears the cost of transferring any such intellectual property to Chatime, which is a factor to consider when evaluating the overall investment.