Does Chatime have the discretion to conduct additional training programs at a location within the franchisee's territory?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
3.2 Continuing Training
- (1) Franchisor may require Franchisee and/or Guarantor and any senior managers of Franchisee to complete a formal training program with Franchisor from time to time during the Initial Term at a place Franchisor designates. All such training will be conducted in English. At Franchisee's request, Franchisor may in its sole discretion conduct additional training programs and provide assistance to Franchisee at a location within the Territory or such other location agreed upon by Franchisee and Franchisor.
- (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.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, Chatime may conduct additional training programs at a location within the franchisee's territory. Chatime may, at the franchisee's request and in its sole discretion, conduct additional training programs and provide assistance to the franchisee at a location within the territory or another location agreed upon by both parties.
The franchisee is responsible for covering all costs associated with the training. These costs include expenses for employees attending the training, such as travel, accommodation, meals, wages, uniforms, workers' compensation insurance, and personal expenses. Additionally, the franchisee must cover the costs for Chatime providing the training, including compensation, travel, accommodation, and meals for the trainers. Any fees levied by Chatime in relation to the training are also the responsibility of the franchisee.
This means that while Chatime has the discretion to offer additional training within the franchisee's territory, the franchisee bears the financial burden of these programs. This could be a significant expense, especially if multiple training sessions are required or if the franchisee requests extensive on-site assistance. Prospective franchisees should consider these potential costs when evaluating the Chatime franchise opportunity and discuss the scope and frequency of additional training with Chatime to better understand the potential financial implications.