Under what conditions is Chatime authorized to appoint a manager to maintain operations on my behalf?
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 is authorized to appoint a manager to maintain operations on your behalf if your Chatime store is not being managed by an operating manager who has attended and completed Chatime's initial training program to their satisfaction. However, Chatime is not required to appoint a manager.
Even if Chatime does appoint a manager, this does not relieve you of your obligations under the franchise agreement. Chatime will not be liable for any debts, losses, costs, or expenses incurred during any period in which they manage the franchised business.
Chatime has the right to charge a reasonable service fee for such management services and may cease providing such services at any time. This means that as a franchisee, you could incur additional costs if Chatime deems it necessary to appoint a manager, and there is no guarantee how long Chatime will continue to provide this service.