Is the Chatime managing owner required to devote full time to the franchised business?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Your managing owner is responsible for overseeing and supervising the operation of the franchised business, but we do not require your managing owner to devote his or her full time to the franchised business unless the managing owner is also the operating manager. The managing owner and operating manager may be the same person.
Before your Chatime Store opens for business, we require that your managing owner and operating manager attend and complete our initial training program to our satisfaction. As a general matter, subject to the successful completion of training, we do not have restrictions on who you may hire as an on-site supervisor, however they must complete all training and be certified as the manager of the location by the Franchisor. You or your approved managers will supervise, train, and evaluate the performance of your employees so that they provide competent and efficient service to customers.
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, the managing owner is not required to devote full time to the franchised business unless they are also the operating manager. The managing owner is responsible for overseeing and supervising the operation. However, the operating manager must devote their full time, attention, and effort to the franchised business, providing direct, day-to-day supervision, and must work at least 38 hours per week at the Chatime store.
The operating manager cannot engage in other business activities that conflict with their responsibilities to Chatime. The managing owner and operating manager can be the same person. Both the managing owner and operating manager must attend and complete Chatime's initial training program.
If the Chatime store is not being managed by a trained operating manager, Chatime has the option to appoint a manager to maintain operations, but this does not relieve the franchisee of their obligations. Chatime can charge a reasonable service fee for these management services and can cease providing them at any time. The franchisee is responsible for ensuring the day-to-day operations are actively managed by a trained operating manager.