If Chatime requires additional training for renewal, who bears the cost of this training?
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, the franchisee is responsible for covering the costs associated with any required training programs. This includes continuing training that Chatime may require for the franchisee, guarantor, or senior managers during the initial term of the agreement.
The franchisee is obligated to pay for all expenses related to employees attending training, such as travel, accommodation, meals, wages, uniforms, 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. Any fees levied by Chatime in relation to the training are also the responsibility of the franchisee.
This means that if Chatime mandates additional training as a condition of renewal, the franchisee will bear the financial burden of this training. This could include travel costs, lodging, and the training fees themselves, in addition to the lost productivity of the staff attending the training. Prospective franchisees should factor in these potential costs when evaluating the overall financial commitment of a Chatime franchise.