Does Chatime require workers' compensation insurance coverage for employees during training?

According to Chatime's 2025 Franchise Disclosure Document, franchisees are required to maintain workers' compensation insurance coverage for their employees during training. Item 7 details the estimated initial investment, including insurance costs, which range from $3,000 to $6,000, payable to a third-party insurance provider.

In addition to workers' compensation, Chatime requires franchisees to maintain several other insurance coverages, including general liability, commercial auto, property/business interruption, cyber liability, employment practices liability, and crime insurance. The specific coverage limits for workers' compensation are $1 million for bodily injury by disease per accident, $1 million policy limit, and $1 million per employee.

Prospective franchisees should factor these insurance costs into their initial investment and ongoing operating expenses. It is important to consult with an insurance professional to ensure that the coverage meets Chatime's requirements and adequately protects the franchisee's business and employees. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement.