If Chatime appoints a manager to maintain operations, does this relieve me of my obligations under the Chatime franchise agreement?
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 Chatime appoints a manager to maintain operations at your store, this action does not relieve you of your obligations under the franchise agreement. Even with an appointed manager, you remain responsible for fulfilling the terms outlined in the agreement.
Chatime is authorized, but not required, to appoint a manager if your store is not being managed by a trained and qualified operating manager. This measure is in place to maintain operational standards and protect the brand. However, the appointment of a manager by Chatime does not transfer your responsibilities as a franchisee to the appointed manager or to Chatime itself.
Furthermore, the FDD states that Chatime will not be liable for any debts, losses, costs, or expenses incurred during the period they manage the franchised business. Chatime has the right to charge a reasonable service fee for these management services and can discontinue them at any time. As a franchisee, you would be responsible for covering these costs, in addition to upholding your other obligations under the franchise agreement.