Are there any restrictions on Chatime's right to sell goods or services similar to those sold by franchisees?

According to Chatime's 2025 Franchise Disclosure Document, Chatime faces no restrictions on selling goods or services that are the same as or similar to those sold by its franchisees. This means Chatime retains the right to compete directly with its franchisees. Chatime may establish outlets that it owns, or distribute its products through other channels, or competitive brands that it controls.

Chatime has the right to use trademarks and systems to establish Chatime stores outside a franchisee's territory. They can also use trademarks or other marks to sell or distribute goods and services anywhere in the world through alternative channels like the Internet, regardless of where the products or services are headed. Chatime can also establish Chatime stores in non-traditional locations such as airports, train stations, gas stations, hospitals, hotels, casinos, stadiums, movie theaters, supermarkets, and military facilities, even within a franchisee's territory.

Chatime is not obligated to compensate franchisees for soliciting or accepting orders within their territory through alternative channels of distribution. Furthermore, Chatime can market to customers anywhere in the world. This extensive latitude granted to Chatime could result in direct competition with franchisees, potentially impacting their sales and profitability. Prospective franchisees should carefully consider the implications of these competitive rights retained by Chatime.