Does Chatime have the authority to complete blank sections in Schedule 1 after the Franchise Agreement is executed?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
al and ongoing costs associated with the capture of data by Franchisor's central polling server and must comply with any associated payment procedures specified from time to time in the Operations Manual or Global Policies and Procedures.
5 Other Obligations of Franchisee
5.1 Personnel
(1) Managing Owner. The "Managing Owner" of your Chatime Store is the person named as such in Section 2 of Schedule 1. The Managing Owner is the primary person who will represent your business in your dealings with us and who will be responsible for overseeing and supervising the operation of the Franchised Business. The Managing Owner must be an owner of an equity interest in your business whom we approve. Franchisee agrees that a shareholder, member or partner will serve as your Managing Owner throughout the term of this Agreement. Franchisee may not replace the Managing Owner without Franchisor's prior written approval, which Franchisor may condition on, among other things, attendance and satisfactory completion by the prospective new Managing Owner of our initial training program at Franchisee's expense.
- (2) Operating Manager. Franchisee will appoint at least one "Operating Manager". The Managing Owner and Operating Manager may be the same person. Franchisee's Operating Manager may but need not be an owner of your business. You will ensure that the day-to-day operation of the Franchised Business is always actively managed by an Operating Manager who has attended and successfully completed such training as we may require from time to time. The Operating Manager will actively devote his or her full time, attention and effort to the Franchised Business and provide direct, day to-day supervision of the operation of the Franchised Business as provided in the then-current Operations Manual. The current Operations Manual requires the Operating Manager to devote at least 38 hours per week to the day to day operations of your Chatime Store. The Operating Manager shall not directly or indirectly engage in any other business or other activity that requires any significant management responsibility or time commitments or that may otherwise conflict with Franchisee's obligations under this Agreement.
- (3) The Operating Manager will ensure at all times the proper levels of customer service in accordance with the Operations Manual and this Agreement.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
Based on the 2025 Chatime Franchise Disclosure Document, the Managing Owner of a Chatime store is designated in Section 2 of Schedule 1. This individual is the primary representative in dealings with Chatime and is responsible for overseeing the franchised business. The Managing Owner must hold an equity interest in the business and receive Chatime's approval. The franchisee must ensure a shareholder, member, or partner serves as the Managing Owner throughout the agreement's term and cannot replace them without Chatime's prior written approval. This approval may depend on the prospective new Managing Owner completing Chatime's initial training program at the franchisee's expense.
Additionally, Section 4 of Schedule 1 specifies the location of the franchised business, which must be agreed upon and approved by Chatime. Section 7 of Schedule 1 contains the details of Chatime's bank account for payments.
While these sections of Schedule 1 are referenced, the FDD excerpts provided do not explicitly state whether Chatime has the authority to complete blank sections in Schedule 1 after the Franchise Agreement is executed. It is recommended that prospective franchisees directly ask Chatime about the process for completing Schedule 1 and whether any sections can be altered or completed after the agreement is signed.