Who bears the cost of additional training required by the Chatime Franchisor for renewal?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
3.1 Initial Training
- (2) If deemed necessary by Franchisor, additional training will be provided by Franchisor either immediately following the Initial Training or otherwise at a place and time determined by Franchisor. Franchisor may charge Franchisee a reasonable fee for such additional training, in addition to the travel, meal and accommodation costs of the trainers, and Franchisee must pay that fee upon receipt of an invoice from Franchisor.
3.2 Continuing Training
(2) Franchisee must pay all costs associated with:
(a) Its employees attending training in accordance with this clause 3 (including travel, accommodation, meals, employee wages and entitlements, uniforms, workers' compensation insurance, and personal expenses);
(b) Franchisor providing training in accordance with this clause 3 (including compensation, travel, accommodation, and meals); and
(c) Any fees levied by Franchisor in relation to such training.
(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.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
Based on the 2025 Chatime Franchise Disclosure Document, the franchisee is responsible for covering the costs associated with training programs. This includes initial training, continuing training, and any additional training that Chatime may require.
Specifically, the franchisee must pay all costs related to employees attending training, such as travel, accommodation, meals, wages, uniforms, workers' compensation insurance, and personal expenses. Additionally, the franchisee is responsible for covering the costs incurred by Chatime for providing the training, including compensation, travel, accommodation, and meals for the trainers. The franchisee is also obligated to pay any fees that Chatime levies in relation to the training.
For initial training, if Chatime deems additional training necessary, they may charge the franchisee a reasonable fee, in addition to the travel, meal, and accommodation costs of the trainers. The franchisee must pay this fee upon receiving an invoice from Chatime. Furthermore, if the Managing Owner or Operating Manager does not satisfactorily complete the initial training program, Chatime may elect to train a qualified replacement at the franchisee's expense.
In summary, the Chatime franchisee bears the full financial burden for all required training programs, including additional training, for themselves, their employees, and any replacement personnel. This is a standard practice in franchising, where franchisees typically cover the costs of training to ensure consistent brand standards and operational procedures.