Is there an Initial Training Fee that Chatime franchisees must pay for the Initial Training?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Franchisor will provide to Franchisee, Guarantor, and any senior managers nominated by Franchisor (up to a maximum of 4 people), a minimum of two weeks continuous days training in English (Initial Training), by one or more Franchisor representatives. Franchisee shall pay Franchisor an Initial Training Fee for the Initial Training. The Initial Training will be conducted at any place designated by Franchisor. Franchisee must ensure that the Initial Training is commenced by the designated persons no earlier than two months prior to your Chatime Store's Opening and completed by no later than your Chatime Store's Opening.
- (2) If deemed necessary by Franchisor, additional training will be provided by Franchisor either immediately following the Initial Training or otherwise at a place and time determined by Franchisor. Franchisor may charge Franchisee a reasonable fee for such additional training, in addition to the travel, meal and accommodation costs of the trainers, and Franchisee must pay that fee upon receipt of an invoice from Franchisor.
- (3) In relation to the initial training described in clause 3.1(1) or 3.1(2), Franchisee agrees to:
- (a) Ensure that all relevant persons attend the training at such times and places specified by Franchisor and complete their training to Franchisor's satisfaction; and
- (b) Bear the full costs and risk of all trainees' attendance at such training programs (including their compensation, travel, accommodation, meals, employee wages and entitlements, uniforms, workers' compensation insurance and personal expenses).
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to the 2025 Chatime Franchise Disclosure Document, franchisees are required to pay an Initial Training Fee for the Initial Training program. This training is provided to the franchisee, guarantor, and any senior managers nominated by Chatime, up to a maximum of four people. The training lasts for a minimum of two weeks of continuous days and is conducted in English by Chatime representatives. The location of the Initial Training is designated by Chatime.
Franchisees must ensure that the designated individuals commence the Initial Training no earlier than two months before the Chatime store's opening and complete it no later than the store's opening date. If Chatime deems it necessary, additional training may be provided either immediately following the Initial Training or at another time and place determined by Chatime. Chatime may charge a reasonable fee for this additional training, on top of covering the travel, meal, and accommodation costs of the trainers.
Franchisees are responsible for ensuring that all relevant individuals attend the training at the times and places specified by Chatime and complete the training to Chatime's satisfaction. Additionally, franchisees bear the full costs and risks associated with their trainees' attendance at the training programs. These costs include compensation, travel, accommodation, meals, employee wages and entitlements, uniforms, workers' compensation insurance, and personal expenses.