Who is responsible for covering the costs associated with Chatime's training, including employee wages, travel, and accommodation?

According to Chatime's 2025 Franchise Disclosure Document, the franchisee is responsible for covering the costs associated with training. Specifically, the franchisee must bear the full costs and risk of all trainees' attendance at training programs. This includes their compensation, travel, accommodation, meals, employee wages and entitlements, uniforms, workers' compensation insurance, and personal expenses. This applies to the initial training described in clause 3.1(1) or 3.1(2).

Chatime may also require additional training, for which the franchisee may be charged a reasonable fee, in addition to covering the travel, meal, and accommodation costs of the trainers. The franchisee is responsible for ensuring that all relevant persons attend the training at the times and places specified by Chatime and complete their training to Chatime's satisfaction.

If the Managing Owner or Operating Manager does not satisfactorily complete the initial training program, or if Chatime determines that such person cannot satisfactorily complete the training program, Chatime may elect to train a qualified replacement at the franchisee's expense. This means the franchisee will incur additional costs if their initial representatives fail to meet Chatime's training standards or if they need to replace a Managing Owner or Operating Manager.

Overall, the financial burden of training falls heavily on the franchisee, who must budget not only for the initial training fee but also for all associated costs for themselves and their employees. This is a fairly standard practice in franchising, as it ensures the franchisee has a vested interest in the successful training of their staff.