Is it mandatory for the Chatime Managing Owner and Operating Manager to be different people?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) Managing Owner. The "Managing Owner" of your Chatime Store is the person named as such in Section 2 of Schedule 1. The Managing Owner is the primary person who will represent your business in your dealings with us and who will be responsible for overseeing and supervising the operation of the Franchised Business. The Managing Owner must be an owner of an equity interest in your business whom we approve. Franchisee agrees that a shareholder, member or partner will serve as your Managing Owner throughout the term of this Agreement. Franchisee may not replace the Managing Owner without Franchisor's prior written approval, which Franchisor may condition on, among other things, attendance and satisfactory completion by the prospective new Managing Owner of our initial training program at Franchisee's expense.
- (2) Operating Manager.
Franchisee will appoint at least one "Operating Manager".
The Managing Owner and Operating Manager may be the same person.
Franchisee's Operating Manager may but need not be an owner of your business.
You will ensure that the day-to-day operation of the Franchised Business is always actively managed by an Operating Manager who has attended and successfully completed such training as we may require from time to time.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the Managing Owner and Operating Manager can be the same person. The FDD specifies that the Managing Owner is the primary contact between the franchisee and Chatime, responsible for overseeing the franchised business. This individual must hold an equity interest in the business and requires Chatime's approval.
Chatime requires the franchisee to appoint at least one Operating Manager to actively manage the day-to-day operations. The Operating Manager ensures proper customer service levels and devotes at least 38 hours per week to the Chatime store. The Operating Manager does not need to be an owner of the business.
However, the document explicitly states, "The Managing Owner and Operating Manager may be the same person." This provides flexibility for franchisees, especially in smaller operations where one person can effectively handle both roles. Prospective franchisees should consider their management structure and capabilities when determining whether to have the Managing Owner and Operating Manager be the same individual or two different people.