What happens if a Chatime franchisee fails the Initial Training program?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
personnel at your cost. (Article 3 of the Franchise Agreement).
The Initial Training Program must be successfully completed to our satisfaction. If you do not complete all training and certification requirements in a timely manner and in line with training
benchmarks and to our satisfaction, you will be liable for all additional training costs and your opening will be delayed, all costs incurred due to the delay will be borne by you. In the event you don't complete the approved training programs within a reasonable time, or as agreed to in writing with the franchisor, we retain the right to terminate your Franchise Agreement. (Article 3 of the Franchise Agreement).
We may require to you complete additional training or refresher courses. This includes a series of ongoing competency based training, for you, your senior managers, and any guarantors throughout the term of your agreement. Training will be conducted either in person, digitally or a combination of blended learning. All such training will be conducted in English. All such training must be successfully completed to our satisfaction. If you fail to complete the approved training programs in a timely manner and to our satisfaction, we will provide additional training at your cost at a location within your Territory or at such other location we determine. You will pay us reasonable compensation and reimburse us for all associated costs and expenses including, without limitation, costs for compensation, travel, accommodations, and meals, upon your receipt of our invoice. (Clause 3.3 of the Franchise Agreement).
You and your managers must have sufficient literacy and fluency in the English language to satisfactorily complete the Initial Training Program and communicate with your employees, customers, and suppliers. (Article 3 and Clause 5.1 of the Franchise Agreement).
For the Initial Training, you must pay us a fee.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 27–35)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, failing the Initial Training Program can lead to additional costs, delayed store opening, and even termination of the Franchise Agreement. If a franchisee does not complete all training and certification requirements in a timely manner and to Chatime's satisfaction, they will be responsible for all additional training costs, and the store opening will be delayed, with the franchisee bearing all costs incurred due to the delay.
Chatime may also require the franchisee to complete additional training following the Initial Training, at a place and time determined by Chatime, for a prorated fee. This fee must be paid upon receipt of Chatime's invoice before the outlet can open. Furthermore, if the franchisee does not complete the approved training programs within a reasonable time, or as agreed to in writing with Chatime, Chatime reserves the right to terminate the Franchise Agreement.
Initial Training is mandatory for all franchisees, their General Managers, and key management personnel. This training must commence no earlier than two months prior to the Chatime store's opening date and must be completed before the store opens. The Initial Training Program fee is $5,000 per Franchise Agreement. Franchisees and their managers must also have sufficient literacy and fluency in English to satisfactorily complete the Initial Training Program.