Does the Chatime franchise agreement specify who bears the 'Cost' of something?
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).
4.14 Point of Sale System
- (3) Franchisee will be responsible for the payment of all initial and ongoing costs associated with the capture of data by Franchisor's central polling server and must comply with any associated payment procedures specified from time to time in the Operations Manual or Global Policies and Procedures.
5.9 Payment and Trading Terms
- (1) Franchisee must pay all Approved Suppliers for all Raw Materials and other Products by the due date for payment and in the manner specified by the Approved Suppliers and comply with the terms of any supplier agreements or terms of trade of the Approved Suppliers.
10.1 Indemnity
- (1) Franchisee Parties indemnify Franchisor and each of its Affiliates (Chatime Group) against all:
- (a) Losses incurred by the Chatime Group;
- (b) Liabilities incurred by the Chatime Group; and
- (c) All Legal Costs and other Costs and expenses incurred by the Chatime Group in connection with a demand, action, arbitration, or other proceeding (including mediation, compromise, out of court settlement or appeal),
arising directly or indirectly as a result of or in connection with:
- (d) A breach by Franchisee Parties of this Agreement or any Collateral Agreement;
- (e) Any injury to, or loss of property of, any person in or on premises from which the business is conducted;
- (f) Franchisee's taxes, liabilities or Costs of The Franchised Business;
- (g) Any negligent or willful act or omission of Franchisee, its employees, agents, servants, or contractors; and
- (h) Any warranty, promise, or representation made by Franchisee Parties or any employee, agent, or other person acting on behalf of Franchisee Parties being incomplete, inaccurate, or misleading.
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the franchise agreement outlines various cost responsibilities for the franchisee.
The Chatime franchisee is responsible for the costs associated with initial and additional training. Specifically, the franchisee must bear the full costs and risks of trainees attending training programs, including compensation, travel, accommodation, meals, employee wages and entitlements, uniforms, workers' compensation insurance, and personal expenses. If Chatime deems additional training necessary, the franchisee may be charged a reasonable fee, along with the travel, meal, and accommodation costs of the trainers.
The franchisee is also responsible for the initial and ongoing costs associated with the capture of data by Chatime's central polling server from the point of sale system. Additionally, the franchisee bears the costs related to Raw Materials and other Products, which must be paid to Approved Suppliers by the due date and in the manner specified by those suppliers.
Furthermore, the Chatime franchise agreement stipulates that the franchisee indemnifies Chatime against all losses, liabilities, legal costs, and other expenses incurred by Chatime in connection with a demand, action, arbitration, or other proceeding arising directly or indirectly from a breach of the agreement, injury or loss of property on the premises, the franchisee's taxes, liabilities, or costs of the franchised business, any negligent act or omission, or any incomplete, inaccurate, or misleading representation made by the franchisee.