Under what condition does a Chatime franchisee's license to use customer data terminate?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
We will own all data that you and/or we collect relating to your customers. We will grant you a license to use this data solely for purposes of operating your Chatime location and this license will exist only while you remain an approved franchisee. You must protect all customer data with a level of control proportionate to the sensitivity of data. You must comply with all applicable data protection laws relevant to your, state, county, territory and region as well as our data processing and data privacy policies set forth in the Operations Manual from time to time. You must also comply with the standards established by PCI-DSS to protect the security of credit card information. Full liability for PCI compliance and data protection is your sole responsibility.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 27–35)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Chatime owns all data collected relating to a franchisee's customers. Chatime grants the franchisee a license to use this data. However, this license is specifically for operating the Chatime location and exists only while the franchisee remains an approved franchisee.
This means that if a franchisee's agreement is terminated or not renewed, their right to use the customer data also ends. The franchisee must protect all customer data with a level of control proportionate to the sensitivity of data and comply with all applicable data protection laws and Chatime's data processing and data privacy policies.
This condition is fairly standard in franchising, as the customer data is a valuable asset that contributes to the brand's overall value. Chatime needs to maintain control over this data to ensure consistency and protect customer privacy across all locations. Prospective franchisees should understand that they will not own the customer data they collect and that their access to it is contingent upon their continued good standing as a franchisee.