Who bears the costs and risks of trainees' attendance at Chatime's initial training programs?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) In relation to the initial training described in clause 3.1(1) or 3.1(2), Franchisee agrees to:
- (a) Ensure that all relevant persons attend the training at such times and places specified by Franchisor and complete their training to Franchisor's satisfaction; and
- (b) Bear the full costs and risk of all trainees' attendance at such training programs (including their compensation, 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 bears the full costs and risks associated with their trainees' attendance at the initial training programs. This includes compensation, travel, accommodation, meals, employee wages and entitlements, uniforms, workers' compensation insurance, and personal expenses. Chatime mandates that all relevant individuals attend the training at the specified times and locations and complete the training to Chatime's satisfaction.
This means that a prospective Chatime franchisee needs to factor in these potentially significant expenses when budgeting for the startup costs of their franchise. The costs can vary depending on the number of people attending the training (up to 4 people including the Franchisee, Guarantor, and any senior managers nominated by Franchisor), the training location, and the duration of the training (a minimum of two weeks).
Franchisees should also be aware that if Chatime deems additional training necessary, they may charge a reasonable fee for this, along with covering the travel, meal, and accommodation costs of the trainers. This further emphasizes the importance of budgeting for training-related expenses and ensuring that trainees complete the initial program satisfactorily to avoid incurring additional costs for replacement training.