Who retains the sole right to use Chatime trademarks on the Internet?
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, Chatime retains the sole right to use its trademarks on the Internet. This includes usage in connection with websites, domain names, directory addresses, metatags, as graphic images on webpages, linking, advertising, co-branding, and other arrangements. This means that as a franchisee, you cannot use Chatime's trademarks on the internet without explicit permission from Chatime.
Chatime requires franchisees to obtain prior written consent before maintaining a website or social media accounts. Even if Chatime approves a franchisee's website, it has the right to impose conditions, such as requiring the domain name and home page to belong to Chatime and be licensed back to the franchisee for use during the term of the franchise agreement. This gives Chatime significant control over its brand's online presence and how franchisees represent the brand online.
This policy is fairly common in franchising, as franchisors typically want to maintain tight control over their brand and ensure consistent messaging across all online platforms. For a prospective Chatime franchisee, this means they will need to adhere to Chatime's guidelines and obtain approval for any online marketing efforts. It also highlights the importance of understanding the terms and conditions related to online presence and trademark usage in the franchise agreement.