What happens if the Chatime Operating Manager does not ensure proper levels of customer service?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) If the Managing Owner or Operating Manager does not satisfactorily complete the initial training program or if we determine that such person cannot satisfactorily complete the training program, or if the Managing Owner or Operating Manager ceases to act as such, then Franchisor may elect to train, at Franchisee's expense, a qualified replacement (who must be reasonably acceptable to us) within 30 days.
Pending the appointment and training of a new Managing Owner or Operating Manager or if, in our judgment, the Franchised Business is not being managed properly, we have the right, but not the obligation, to appoint a manager for the Franchised Business and require you to pay in the manner described in clause 14.
- (6) The Managing Owner and the Operating manager must attend and complete to Franchisor's satisfaction such training programs as Franchisor prescribes including the initial training referred to in clause 3 (which may be conducted in whole or in part at any place designated by Franchisor).
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, the Operating Manager is responsible for ensuring proper levels of customer service. If the Operating Manager does not satisfactorily complete the initial training program, or if Chatime determines that such person cannot satisfactorily complete the training program, Chatime may elect to train a qualified replacement at the franchisee's expense within 30 days. The replacement Operating Manager must be reasonably acceptable to Chatime.
Pending the appointment and training of a new Operating Manager, or if Chatime judges that the franchised business is not being managed properly, Chatime has the right, but not the obligation, to appoint a manager for the franchised business. The franchisee is then required to pay for this manager as described in clause 14 of the franchise agreement.
This clause highlights the importance Chatime places on maintaining its customer service standards. It also means that a Chatime franchisee could incur additional expenses if their Operating Manager fails to meet Chatime's standards, either through training costs for a replacement or by having Chatime appoint a manager at the franchisee's expense. This underscores the need for franchisees to carefully select and train their Operating Managers to align with Chatime's operational expectations.