Is the Chatime Operating Manager required to be an owner of the franchise business?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
ther 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. 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.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the Operating Manager is not required to be an owner of the franchise business. The FDD states that the Franchisee's Operating Manager 'may but need not be an owner of your business.'
However, the Managing Owner of the Chatime store must be an owner of an equity interest in the business and is the primary person who represents the business in dealings with Chatime. The Managing Owner is responsible for overseeing and supervising the operation of the franchised business. The Managing Owner and Operating Manager may be the same person.
Chatime requires the Operating Manager to actively manage the day-to-day operations of the franchised business and to have successfully completed the training that Chatime requires. The Operating Manager must devote their full time, attention, and effort to the Chatime business, providing direct, day-to-day supervision, and must devote at least 38 hours per week to the daily operations of the Chatime store. The Operating Manager cannot be involved in any other business or activity that would conflict with their obligations to Chatime.