Under what conditions can a Chatime franchisee engage in digital transactions?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Your franchise is limited to your specified Territory and all product sales must be made from your Store. You are not permitted to sell or distribute our goods or services through the use of the Internet or other electronic communications, except for digital transactions via our approved loyalty, delivery aggregator and brand platforms as designated from time to time. We may require you to participate in a gift card and loyalty program in accordance with our policies and brand procedures.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD pages 42–43)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, franchisees are generally restricted from selling or distributing goods and services through the internet or other electronic communications. However, there is an exception: franchisees can engage in digital transactions through Chatime's approved loyalty, delivery aggregator, and brand platforms, as designated by Chatime from time to time.
This means that a Chatime franchisee's ability to conduct online sales is heavily controlled by Chatime. Franchisees must use only the digital platforms that Chatime has specifically approved. This could include a Chatime-branded app, partnerships with specific food delivery services, or a loyalty program platform chosen by Chatime. Franchisees do not have the freedom to choose their own online sales channels.
Chatime also retains the right to require franchisees to participate in a gift card and loyalty program, according to Chatime's policies and brand procedures. This further emphasizes Chatime's control over digital sales and customer engagement, ensuring a consistent brand experience across all locations and digital channels. Prospective franchisees should inquire about which platforms are currently approved and what the requirements are for participating in these digital programs.