Can the Chatime operating manager take on other business responsibilities?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Your operating manager must devote his or her full time, attention and effort to the franchised business and provide direct, day-to-day supervision of the operation, in accordance with the terms and conditions of your Franchise Agreement and the Operations Manual. Under the current requirements of the Operations Manual, each manager must devote at least 38 hours per week in the day-to-day operation of your Chatime Store. The operating manager may not take on other business responsibilities that would be inconsistent with the operational requirements of the
franchised business or contrary to its best interest. 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.
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 operating manager's role is very specific and restrictive regarding outside business activities. The operating manager must devote their full time, attention, and effort to the Chatime franchised business. This includes providing direct, day-to-day supervision of the store's operations, adhering to the Franchise Agreement and the Operations Manual. The Operations Manual currently requires a minimum of 38 hours per week dedicated to the daily operation of the Chatime store.
The document explicitly states that the operating manager cannot take on other business responsibilities that would conflict with the operational requirements of the franchised business or be contrary to its best interests. This restriction ensures that the manager's focus remains solely on the Chatime store, maintaining quality and service standards. The managing owner, who oversees the franchised business, isn't required to dedicate full-time attention unless they also serve as the operating manager.
This requirement has significant implications for a prospective Chatime franchisee. They must ensure their operating manager is fully committed to the Chatime business and does not have conflicting outside interests or time commitments. Failure to comply with these requirements could lead to intervention by Chatime, including the appointment of a manager at the franchisee's expense if the store is not being properly managed or if the operating manager does not complete the required training. This highlights the importance of carefully selecting and training a dedicated operating manager to avoid potential operational and financial repercussions.