What are Chatime franchisees required to do regarding training programs for their employees?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
You will ensure that the day-to-day operation of the Franchised Business is always actively managed by an Operating Manager who has attended and successfully completed such training as we may require from time to time.
The Managing Owner and the Operating manager must attend and complete to Franchisor's satisfaction such training programs as Franchisor prescribes including the initial training referred to in clause 3 (which may be conducted in whole or in part at any place designated by Franchisor).
(1) Franchisor will provide to Franchisee, Guarantor, and any senior managers nominated by Franchisor (up to a maximum of 4 people), a minimum of two weeks continuous days training in English (Initial Training), by one or more Franchisor representatives. Franchisee shall pay Franchisor an Initial Training Fee for the Initial Training. The Initial Training will be conducted at any place designated by Franchisor. Franchisee must ensure that the Initial Training is commenced by the designated persons no earlier than two months prior to your Chatime Store's Opening and completed by no later than your Chatime Store's Opening.
(2) If deemed necessary by Franchisor, additional training will be provided by Franchisor either immediately following the Initial Training or otherwise at a place and time determined by Franchisor. Franchisor may charge Franchisee a reasonable fee for such additional training, in addition to the travel, meal and accommodation costs of the trainers, and Franchisee must pay that fee upon receipt of an invoice from Franchisor.
(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).
(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, franchisees have several obligations regarding training. The franchisee must ensure that the day-to-day operations are actively managed by an Operating Manager who has successfully completed the training that Chatime requires from time to time. The Managing Owner must also attend and complete training programs to Chatime's satisfaction, including the initial training. If the Managing Owner or Operating Manager does not satisfactorily complete the initial training program, Chatime may elect to train a qualified replacement at the franchisee's expense.
Chatime also provides initial training to the franchisee, guarantor, and any senior managers nominated by Chatime, up to a maximum of 4 people. This initial training consists of a minimum of two weeks of continuous days training in English. The franchisee is responsible for paying Chatime an initial training fee for this training. The franchisee must ensure that the designated persons commence the initial training no earlier than two months prior to the Chatime store's opening and complete it no later than the store's opening. If Chatime deems it necessary, additional training will be provided, and the franchisee may be charged a reasonable fee for such additional training, as well as the travel, meal, and accommodation costs of the trainers.
Franchisees must ensure that all relevant persons attend the training at the times and places specified by Chatime and complete their training to Chatime's satisfaction. Franchisees also 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. Chatime may also require franchisees, guarantors, and any senior managers to complete a formal training program from time to time during the initial term at a place Chatime designates. The franchisee must pay all costs associated with employees attending training, Chatime providing training, and any fees levied by Chatime in relation to such training.