As a Chatime franchisee, am I required to comply with Global Policies and Procedures?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
um of changes will become the Operations Manual Addendum.
- (3) Franchisee may provide access to the Operations Manual and Operations Manual Addendum to Franchisee's key operational employees subject to the employees entering into the approved confidentiality agreement with Franchisor.
3.5 Policies and Procedures
Franchisee:
- (1) Must comply with any Global Policies and Procedures; and
- (2) May issue and enforce compliance with policies and procedures for the operation of the
Outlet in the Territory, provided that Franchisor has first approved those policies.
3.6 Changes to Operations Manual
- (1) Franchisor may add to, delete, or otherwise modify the specifications, standards, operating procedures, systems, instructions, and any other information set out in the Operations Manual or Operations Manual Addendum by giving notice to Franchisee of the change via email.
- (2) A change takes effect and forms part of the Operations Manual and Operations Manual Addendum 7 days after notification to Franchisee.
- (3) Franchisee must at its Cost adopt, in the conduct of The Franchised Business, all changes to the Operations Manual and Operations Manual Addendum.
3.7 Franchisee Must Keep Operations Manual Secure
- (1) Franchisee must:
- (a) Keep, and use reasonable efforts to ensure that all Franchisee's employees keep, all hard and soft copies of the Operations Manual (including the Operations Manual Addendum) in a safe and secure place;
- (b) Return to Franchisor on demand all superseded, replaced, or outdated copies of the Operations Manual and Operations Manual Addendum;
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, franchisees must comply with any Global Policies and Procedures issued by Chatime. The FDD defines "Global Policies and Procedures" as the written policies and procedures issued by Chatime from time to time relating to the conduct of the franchisee's operation or operational issues concerning outlets.
Chatime also maintains an Operations Manual, which contains specifications, standards, operating procedures, systems and instructions. Chatime may modify the Operations Manual by providing notice of the change to the franchisee via email. Changes to the Operations Manual take effect 7 days after notification, and the franchisee must adopt these changes at their own cost in the conduct of their franchised business.
Furthermore, franchisees are required to maintain and preserve full, complete, and accurate records and reports pertaining to the development and operation of outlets. These records must include the information prescribed in the Operations Manual or the Global Policies and Procedures. This highlights the importance of adhering to both the Operations Manual and any Global Policies and Procedures to ensure compliance and maintain accurate records for the Chatime franchise.