Who bears the cost when a Chatime representative visits the Territory and meets with the Franchisee?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may convene meetings and conferences (including regional meetings and conferences) from time to time for Franchisee and its key personnel designated by Franchisor, which may include other franchisees, whenever Franchisor considers this necessary or appropriate. Franchisee must ensure that the General Manager and such other key personnel of Franchisee, at Franchisee's Cost, attend such meetings and conferences. Franchisee shall pay Franchisor any fees or costs associated with the meeting or conferences plus Franchisee's associated expenses including, without limitation, costs for travel, accommodation, meals, employee wages and entitlements, uniforms, workers' compensation insurance and personal expenses.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the franchisee is generally responsible for covering costs associated with meetings and conferences convened by Chatime. Specifically, the franchisee must ensure that the General Manager and other key personnel attend these meetings at the franchisee's own expense. These costs encompass fees or expenses linked to the meetings or conferences, in addition to the franchisee's associated expenses, including travel, accommodation, meals, employee wages and entitlements, uniforms, workers' compensation insurance, and personal expenses.
This means that if Chatime calls for a regional meeting or conference, the franchisee will need to budget for the travel, lodging, and other related costs for their representatives to attend. This could potentially create a significant financial burden, especially if meetings are frequent or held in distant locations. Franchisees should factor in these potential expenses when evaluating the overall cost of investing in a Chatime franchise.
It is important to note that Chatime is required to provide a reasonable period of notice for these meetings and conferences, allowing franchisees some time to prepare and budget for the associated expenses. The franchisor determines the location, agenda, duration, and all procedures and formats of each meeting and conference. Prospective franchisees should inquire about the typical frequency, location, and estimated costs of these meetings to better understand the financial implications.