What is the amount of the de-branding fee for a Chesters franchise?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of fee* | Amount | Due Date | Remarks |
|---|---|---|---|
| Indemnification | Will vary under circumstances | As incurred | You must reimburse us if we are held liable for claims from your Restaurant’s operation or incur costs in defending them. |
| Liquidated Brand Damages | $10,000 | As incurred | Due if you or your owners violate non-competition restrictions described in Items 17(q) and (r). |
| De-Branding Fee | $10,000 | As incurred Payment is due by credit card or automatic debit | Due if you do not comply with payment and Restaurant-specific physical de-branding obligations within 14 business days after Agreement expires or is terminated. |
Source: Item 6 — OTHER FEES (FDD pages 14–16)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the de-branding fee is $10,000. This fee is incurred if a franchisee does not comply with the payment and restaurant-specific physical de-branding obligations within 14 business days after the franchise agreement expires or is terminated. Payment is due via credit card or automatic debit.
De-branding typically involves removing all Chesters signage, logos, and branding elements from the restaurant location to ensure it no longer appears to be a Chesters franchise. This protects Chesters's brand identity and prevents customer confusion. The fee covers Chesters's potential costs associated with ensuring the de-branding is completed correctly.
Franchisees should be aware of these obligations and the associated costs upon termination or expiration of their franchise agreement. Failing to meet these obligations within the specified timeframe can result in the $10,000 fee. It is important to understand the specific de-branding requirements outlined in the franchise agreement to avoid incurring this charge.