What is my responsibility regarding employees at my Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
ation to Participate in the Actual Operation of the Franchise Business**
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.
Before your Chatime Store opens for business, we require that your managing owner and operating manager attend and complete our initial training program to our satisfaction. As a general matter, subject to the successful completion of training, we do not have restrictions on who you may hire as an on-site supervisor, however they must complete all training and be certified as the manager of the location by the Franchisor. You or your approved managers will supervise, train, and evaluate the performance of your employees so that they provide competent and efficient service to customers.
If at any time your Chatime Store is not being managed by an operating manager who has attended and completed our initial training program to our satisfaction, we are authorized, but not required, to appoint a manager to maintain operations on your behalf. Our appointment of a manager does not relieve you of your obligations under the franchise agreement. We will not be liable for any debts, losses, costs or expenses incurred during any period in which we manage the franchised business. We have the right to charge a reasonable service fee for such management services, and we may cease providing such services at any time.
A franchise business requires personal attention and it is important that you personally be involved in all facets of the business. You will operate your franchise business so that our standards of service, quality, and cleanliness are maintained and you will set standards for your employees to follow.
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, franchisees have several responsibilities regarding their employees. A key role is the operating manager, who must devote at least 38 hours per week to the daily operation of the Chatime store. This manager is responsible for the direct, day-to-day supervision of the business, adhering to the Franchise Agreement and Operations Manual. The operating manager cannot engage in other business activities that conflict with their obligations to Chatime.
Before opening a Chatime store, the managing owner and operating manager must complete Chatime's initial training program. While Chatime generally doesn't restrict who franchisees can hire as on-site supervisors, these supervisors must complete all required training and be certified as a manager by Chatime. Franchisees (or their approved managers) are responsible for supervising, training, and evaluating employees to ensure competent and efficient customer service.
If a Chatime store isn't managed by a trained operating manager, Chatime has the option (but not the obligation) to appoint a manager to oversee operations. However, this doesn't relieve the franchisee of their obligations under the franchise agreement. Chatime isn't liable for any debts, losses, or expenses incurred during their management period and can charge a reasonable service fee for these services. Franchisees must also ensure their managers have sufficient English language skills to complete training and communicate effectively with employees, customers, and suppliers.