What obligation does a Chatime franchisee have regarding the operation of the Franchised Business at the Premises during the Initial Term?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) Franchisee agrees that during the Initial Term, it will at all times faithfully, honestly, and diligently perform its obligations under this Agreement to open and operate the Franchised Business at the Premises, and will continuously use its best efforts to promote and enhance the Chatime Network Name.
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.
The Operating Manager will actively devote his or her full time, attention and effort to the Franchised Business and provide direct, day-to-day supervision of the operation of the Franchised Business as provided in the then-current Operations Manual.
The current Operations Manual requires the Operating Manager to devote at least 38 hours per week to the day to day operations of your Chatime Store.
The Operating Manager shall not directly or indirectly engage in any other business or other activity that requires any significant management responsibility or time commitments or that may otherwise conflict with Franchisee's obligations under this Agreement.
- (3) The Operating Manager will ensure at all times the proper levels of customer service in accordance with the Operations Manual and this Agreement.
Franchisee must use a point of sale system and related technology systems nominated or approved by Franchisor. The supplier of the point of sale system and related technology systems must be approved by Franchisor*.*
- (2) Franchisee must ensure that connectivity at the Outlet is maintained and available at all times to allow all data generated by the point of sale system to be captured by Franchisor's central polling server.
- (3) Franchisee will be responsible for the payment of all initial and ongoing costs associated with the capture of data by Franchisor's central polling server and must comply with any associated payment procedures specified from time to time in the Operations Manual or Global Policies and Procedures.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a franchisee has specific obligations regarding the operation of their franchised business during the initial term. Chatime requires the franchisee to faithfully, honestly, and diligently perform their obligations to open and operate the franchised business at the premises. The franchisee must continuously use its best efforts to promote and enhance the Chatime Network name.
Chatime emphasizes the franchisee's direct and exclusive involvement in the business. Subcontracting is not allowed without prior written consent from Chatime. The franchisee is expected to manage the day-to-day operations actively through an Operating Manager who has completed the required training. This Operating Manager must devote their full time, attention, and effort to the Chatime store, providing direct supervision as outlined in the Operations Manual, which currently requires at least 38 hours per week.
The Operating Manager cannot engage in other business activities that might conflict with their responsibilities to Chatime. The franchisee must ensure proper customer service levels are maintained. Chatime retains the right to appoint a manager if the franchised business is not being managed properly, with the franchisee bearing the cost. The franchisee must also use a point-of-sale system approved by Chatime and maintain connectivity to allow data capture by Chatime's central polling server, covering all associated costs. These obligations ensure that the Chatime brand is consistently and effectively represented.