What is the role of the Operating Manager in the Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
(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 Chatime's 2025 Franchise Disclosure Document, the Operating Manager is responsible for the day-to-day operations of the franchised business. The Operating Manager does not need to be an owner of the business. Chatime requires that the franchisee ensures the day-to-day operation of the business is actively managed by an Operating Manager who has successfully completed the required training.
The Operating Manager must devote their full time, attention, and effort to the Chatime business, providing direct, day-to-day supervision as detailed in the Operations Manual. The current Operations Manual requires the Operating Manager to work at least 38 hours per week. The Operating Manager cannot be involved in any other business or activity that would interfere with their responsibilities to the Chatime franchise.
Specifically, the Operating Manager is responsible for ensuring proper customer service levels are maintained according to the Operations Manual and the Franchise Agreement. The franchisee must ensure the Operating Manager focuses their efforts on the franchising, development, and operation of the Chatime network. If the Operating Manager does not complete the initial training satisfactorily, or ceases to act as such, Chatime may train a replacement at the franchisee's expense within 30 days. Chatime also has the right to appoint a manager if the business is not being managed properly, with the franchisee bearing the cost as described in clause 14. Both the Managing Owner and the Operating Manager must attend and complete the training programs prescribed by Chatime.