If additional training is required by Chatime for franchise renewal, who bears the cost of attendance, including travel, accommodation, and training fees?
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, franchisees are responsible for covering the costs associated with any required training programs. This includes situations where Chatime mandates formal training programs for the franchisee, guarantor, or senior managers during the initial term of the franchise agreement.
The franchisee is obligated to pay for all expenses related to their employees attending training. These expenses encompass travel, accommodation, meals, employee wages and entitlements, uniforms, workers' compensation insurance, and personal expenses. Additionally, the franchisee must cover the costs incurred by Chatime for providing the training, including compensation, travel, accommodation, and meals for the trainers. Franchisees are also responsible for any fees levied by Chatime in relation to the training itself.
This means that if Chatime requires additional training as a condition of franchise renewal, the franchisee will bear the full financial burden of attendance. This includes not only the direct training fees but also all associated travel, accommodation, and personnel costs. Prospective franchisees should factor these potential expenses into their financial planning, as continuing training is a standard requirement in franchising to maintain brand standards and operational consistency.