What fee must be paid to Chatime for each Franchise Agreement regarding the Initial Training Program?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
depending on the vendors and suppliers.
- (2) Initial Training and Related Personnel Cost. We conduct an initial training program for your benefit (the "Initial Training Program"). Prior to and during the period of your Chatime Store opening under your Franchise Agreement, we will provide any on-site portion of the Initial Training Program (the "Initial Training") to you and your employees, up to four persons. The Initial Training will be conducted by one or two Franchisor representatives. You must pay us a fee of $5,000 for each Franchise Agreement. Please note that the complete Initial Training Program generally lasts two weeks and any additional follow-up training (if applicable) generally lasts approximately five to ten days. You will pay for you and your employee's reasonable accommodations, meal and related travel expenses. If you are required to attend the Initial Training Program at our designated training center, we estimate that the amount of travel and living expenses you will spend on you and your employees will be $200 per person per day.
The above estimated costs are for up to four people to attend Initial Training, to be conducted by one or two Franchisor representatives. If additional persons are required to attend Initial Training, the costs will increase proportionately. There may also be additional training time needed to achieve required competency levels. The amount of time required is a function of each individual's ability to personally demonstrate the competencies. This may increase your costs for travel, hotels, and meals for you and your designated representatives. Any wages or salaries you pay trainees while they attend train
Source: Item 7 — Estimated Initial Investment (FDD pages 17–22)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, franchisees must pay a fee of $5,000 to Chatime for each Franchise Agreement to cover the Initial Training Program. This program includes on-site training provided to the franchisee and up to four employees, conducted by one or two Chatime representatives. The complete Initial Training Program generally lasts two weeks, with additional follow-up training potentially lasting five to ten days.
In addition to the $5,000 fee, franchisees are responsible for covering the costs of accommodations, meals, and travel expenses for themselves and their employees attending the training. If the training takes place at a designated training center, the estimated cost for travel and living expenses is $200 per person per day. These costs can increase if additional personnel are required to attend the Initial Training Program or if more training time is needed to achieve the required competency levels.
It's important to note that the estimated costs provided cover up to four people attending the Initial Training. If more individuals need training, the costs will increase proportionately. Furthermore, any wages or salaries paid to trainees during the training period are not included in the provided estimates and are the franchisee's responsibility. Franchisees should factor in these additional expenses when budgeting for the initial investment in a Chatime franchise.