Can Chatime use the trademarks in connection with advertising or promotional materials directed to customers anywhere in the world?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Regardless of either proximity to your Territory, or your Chatime Store, or any actual or threatened impact on sales of your franchise business, we may (i) use the Trademarks and System in connection with establishing and operating Chatime Stores at any location outside your Territory, (ii) use the Trademarks or other marks in connection with selling or distributing any goods or services anywhere in the world through alternative channels of distribution such as the Internet or other electronic communications, telephone, mail, or similar channels regardless of the destination of the products or services, and we may expand our sale of products on a local, regional, national, or international basis; you may not distribute products through alternative channels of distribution and we are under no obligation to compensate you for our soliciting or accepting orders within your Territory through alternative channels of distribution, (iii) use the Trademarks or System in connection with establishing and operating Chatime Stores in any non-traditional or special distribution channel (i.e., airports, train stations, gas/convenience stores, limited-access highway food facilities, hospitals, convention centers, hotels, casinos and resorts, stadiums, arenas, ballparks, movie theaters, entertainment and sports complexes, department stores and "big box" superstores, supermarkets, festivals, fairs and other mass gathering locations or events, offices, factories, military facilities, and any government buildings or other institutional facilities), including special distribution channels located within your Territory, (iv) without using the Trademarks, acquire, establish, or operate any business of any kind at any location anywhere in the world, or (v) use the Trademarks in connection with soliciting or directing advertising or promotional materials to customers anywhere in the world.
Source: Item 12 — Territory (FDD pages 35–38)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Chatime retains the right to use its trademarks when advertising or promoting to customers globally. This means that Chatime has the authority to direct advertising and promotional materials to customers anywhere in the world, without restriction.
For a prospective franchisee, this indicates that Chatime maintains control over its brand's advertising and promotional strategies on a global scale. Franchisees should be aware that they do not have control over the brand's global marketing efforts. Chatime's overarching marketing strategies could impact individual franchise locations, either positively or negatively, depending on the effectiveness and relevance of these campaigns to specific local markets.
This is a fairly standard practice in franchising, where the franchisor typically manages the brand's overall image and marketing to ensure consistency. However, franchisees should inquire about how Chatime's global marketing strategies are developed and whether there is any opportunity for franchisee input or localized adaptations to suit their specific market conditions. Understanding the degree of collaboration and flexibility in marketing efforts is crucial for franchisees to align their local strategies with the broader brand vision.