Are there any known infringing uses that could materially affect a Chatime franchisee's use of copyrights?

According to Chatime's 2025 Franchise Disclosure Document, there are no known infringing uses that could materially affect a franchisee's use of the copyrights. Chatime claims copyright interests in its Operations Manual, advertising materials, the content and format of its products, and all other printed and pictorial materials that they produce. These materials are proprietary and confidential and are to be used by the franchisee only as long as they are a franchisee and as provided in the Franchise Agreement.

Chatime and La Kaffa retain the right to control any litigation involving their copyrights. Chatime will cover the costs incurred by the franchisee to commence or defend legal proceedings relating to their copyrights, provided that Chatime has authorized such actions. If Chatime requires a franchisee to modify or discontinue using material covered by copyright, the franchisee must do so immediately.

A Chatime franchisee does not receive the right to use an item covered by a patent or copyright unless it is expressly incorporated as proprietary information in the Operations Manual. Franchisees may use these materials in the operation of their Chatime store during the term of the Franchise Agreement, but not in any other way for their own benefit, or communicate or disclose them to any other person or entity. Franchisees must promptly notify Chatime of any unauthorized use or challenges to their use of this proprietary information.