On what page of the Chatime FDD does it discuss the franchisee's operational obligations?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
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.
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.
(4) Franchisee must ensure that the Operating Manager exerts their full-time efforts to the franchising, development, and operation of the Chatime Network and does 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.
(5) If the Managing Owner or Operating Manager does not satisfactorily complete the initial training program or if we determine that such person cannot satisfactorily complete the training program, or if the Managing Owner or Operating Manager ceases to act as such, then Franchisor may elect to train, at Franchisee's expense, a qualified replacement (who must be reasonably acceptable to us) within 30 days.
Pending the appointment and training of a new Managing Owner or Operating Manager or if, in our judgment, the Franchised Business is not being managed properly, we have the right, but not the obligation, to appoint a manager for the Franchised Business and require you to pay in the manner described in clause 14.
- (6) The Managing Owner and the Operating manager must attend and complete to Franchisor's satisfaction such training programs as Franchisor prescribes including the initial training referred to in clause 3 (which may be conducted in whole or in part at any place designated by Franchisor).
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, Item 23 discusses the franchisee's operational obligations. Specifically, it outlines the roles and responsibilities of the Managing Owner and the Operating Manager, who are crucial for the day-to-day management and supervision of the Chatime store.
The FDD emphasizes that the Operating Manager must devote their full time, attention, and effort to the franchised business, including direct supervision as detailed in the Operations Manual. The current Operations Manual requires the Operating Manager to devote at least 38 hours per week to the daily operations of the Chatime store. This ensures that the store is actively managed and meets the franchisor's standards for customer service and operational efficiency.
Furthermore, the franchisee must ensure that the Operating Manager focuses solely on the Chatime business and does not engage in any conflicting activities. The franchisor retains the right to train a replacement at the franchisee's expense if the current manager does not complete training satisfactorily or ceases to act in their role. The franchisor also has the option to appoint a manager if the franchised business is not being managed properly, with the franchisee bearing the costs as outlined in clause 14.
In summary, Item 23 of the Chatime FDD provides detailed information regarding the operational obligations of the franchisee, particularly concerning the roles and responsibilities of the Managing Owner and Operating Manager, ensuring the smooth and efficient operation of the Chatime store. These obligations are designed to maintain brand consistency and quality across all franchised locations.