What is the required employment status of the 'Operations and Training Manager' for a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
his Agreement. Franchisee may not replace the Managing Owner without Franchisor's prior written approval, which Franchisor may condition on, among other 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. 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.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, a franchisee must appoint at least one 'Operating Manager' for their Chatime store. The Managing Owner and the Operating Manager can be the same person. However, the Operating Manager does not need to be an owner of the business.
The Operating Manager is responsible for the day-to-day management of the franchised business and must have 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 work at least 38 hours per week.
The Operating Manager cannot be involved in any other business or activity that would require significant management responsibility or time commitments, or that would conflict with the franchisee's obligations under the Franchise Agreement. The Operating Manager is also responsible for ensuring proper customer service levels are maintained. If the Operating Manager does not complete the initial training program satisfactorily, Chatime may train a qualified replacement at the franchisee's expense.