Can the Chatime Franchisor specify the number and level of additional management personnel required?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
(9) Franchisee agrees to hire and maintain the number and level of additional management personnel, as may be specified by Franchisor from time to time as part of the System Standards for the development and supervision of operation of the Outlet within the Territory in accordance with this Agreement.
(10) Franchisee will have sole authority and control over the day-to-day operations of the Franchised Business and its employees.
Franchisee will be solely responsible for recruiting
and hiring the persons you employ to operate the Franchised Business. Franchisee will also be responsible for their training, wages, taxes, benefits, safety, work schedules, work conditions, assignments, discipline and termination. Franchisee agrees to comply with all workplace related laws. Franchisor will have no right or obligation to direct Franchisee's employees. Franchisor has no direct, indirect, or reserved power over, or authority to control, Franchisee's employee's wages, benefits, other compensation, hours of work, hiring, discharge, discipline, supervision or direction, or work rules. At no time will you or your employees be deemed to be employees of ours or of any of our affiliates.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Chatime has the right to specify the number and level of additional management personnel a franchisee must hire. The franchisee is required to adhere to these specifications as part of the System Standards for the development, supervision, and operation of the outlet.
Chatime also mandates that the franchisee appoint at least one "Operating Manager," who may or may not be an owner of the business. This Operating Manager is responsible for the day-to-day management of the franchised business and must have successfully completed the training required by Chatime. The Managing Owner and Operating Manager may be the same person.
While Chatime specifies the need for an Operating Manager and can dictate the number and level of additional management personnel, the franchisee retains sole authority and control over the day-to-day operations of the franchised business and its employees. This includes the responsibility for recruiting, hiring, training, and managing employees, ensuring compliance with workplace laws, and handling all related aspects of employment.