What is the role of the 'Operations and Training Manager' for a Chatime franchise?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
- (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.
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 franchisee must ensure that an Operating Manager actively manages the business, having completed the training that Chatime requires. The Operating Manager's role involves full-time attention and direct supervision of the store's daily operations, as detailed in the current Operations Manual. The manual stipulates that the Operating Manager must dedicate at least 38 hours per week to these daily operations.
The Operating Manager cannot be involved in other business activities that demand significant time or conflict with the franchisee's obligations under the Franchise Agreement. They are responsible for ensuring high levels of customer service, as outlined in the Operations Manual and the Franchise Agreement. The franchisee must ensure the Operating Manager focuses on the franchising, development, and operation of the Chatime network.
If the Operating Manager does not complete the initial training program satisfactorily, or if they cease to act in that role, Chatime may train a replacement at the franchisee's expense. The replacement must be qualified and reasonably acceptable to Chatime. Pending the appointment and training of a new Operating Manager, or if Chatime believes the business is not being managed properly, Chatime has the right to appoint a manager for the business, with the franchisee bearing the costs as described in clause 14 of the agreement. Both the Managing Owner and the Operating Manager must attend and complete the training programs that Chatime prescribes, including the initial training.