What costs are the Chatime franchisee responsible for covering related to trainees attending the initial training program?
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 is responsible for covering all costs and risks associated with trainees attending the initial training program. This includes compensation, travel, accommodation, meals, employee wages and entitlements, uniforms, workers' compensation insurance, and personal expenses.
This means that in addition to paying an initial training fee to Chatime, franchisees must also budget for all expenses related to sending their designated personnel to the training. These costs can vary significantly depending on the location of the training, the number of trainees, and the duration of the program. Franchisees should consider these factors when estimating their initial investment and operating expenses.
It is important for prospective Chatime franchisees to carefully consider these training-related expenses and factor them into their financial projections. Understanding these obligations upfront will help ensure they are adequately prepared for the initial investment required to start their franchise.