Can Chatime cease providing management services for my Chatime store at any time?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
If at any time your Chatime Store is not being managed by an operating manager who has attended and completed our initial training program to our satisfaction, we are authorized, but not required, to appoint a manager to maintain operations on your behalf. Our appointment of a manager does not relieve you of your obligations under the franchise agreement. We will not be liable for any debts, losses, costs or expenses incurred during any period in which we manage the franchised business. We have the right to charge a reasonable service fee for such management services, and we may cease providing such services at any time.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 41–42)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, if a franchisee's Chatime store is not being managed by a trained and approved operating manager, Chatime has the option to appoint a manager to oversee operations. While Chatime is authorized to appoint a manager in such cases, it is not obligated to do so.
If Chatime does appoint a manager, the franchisee remains responsible for all obligations under the franchise agreement. Chatime will not be held liable for any debts, losses, costs, or expenses incurred during the period they manage the franchised business.
Importantly, Chatime retains the right to charge a reasonable service fee for these management services and can cease providing such services at any time. This means a franchisee could face the sudden loss of a manager appointed by Chatime, potentially disrupting store operations.