On what page of the Chatime FDD can I find information about temporary operation by the franchisee?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Item 23 discusses the circumstances under which the franchisor may temporarily manage a Chatime store. Specifically, if the franchisee cannot find a qualified replacement for the Managing Owner or Operating Manager within 30 days, or if Chatime believes the store is not being managed properly, Chatime has the right, but not the obligation, to appoint a manager.
This means that Chatime can step in to manage the store temporarily to ensure operational standards are maintained. The franchisee would be responsible for covering the costs associated with this temporary management, as described in clause 14 of the agreement. This provision protects the Chatime brand and ensures continuity of operations even if the franchisee faces management challenges.
Prospective franchisees should carefully review Item 23 and clause 14 to understand the full scope of Chatime's rights and the franchisee's financial responsibilities in such a scenario. It is important to clarify the specific costs associated with temporary management and the criteria Chatime uses to determine if a store is not being managed properly.