Does Chatime have the right to charge a service fee if they manage my Chatime store?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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, Chatime has the right to appoint a manager to oversee operations if a franchisee's store is not being managed by an operating manager who has completed Chatime's initial training program. This appointment does not relieve the franchisee of their obligations under the franchise agreement.
Chatime will not be held liable for any debts, losses, costs, or expenses incurred during the period they manage the franchised business. Importantly, Chatime has the right to charge a reasonable service fee for these management services and can cease providing such services at any time.
For a prospective franchisee, this means that if the franchisee's operating manager does not meet Chatime's training standards, Chatime can step in to manage the store, charging a service fee for their management. The franchisee remains responsible for all obligations under the franchise agreement, even while Chatime is managing the store. This clause protects Chatime from liabilities incurred during their management and allows them to be compensated for their services.