Besides the quarterly fee, what other marketing expense can Chesters charge franchisees?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
ertising**
We do not require franchisees to contribute to or participate in an advertising or marketing fund. You must pay us a quarterly marketing support fee. This is for combination of physical marketing materials that we will prepare and periodically send to you, as well as digital marketing campaigns designed to build brand awareness and drive traffic to your location. We charge $200 per quarter and have the right to increase the quarterly fee upon 90 days' prior written notice to you (although the quarterly fee will not exceed $325). We also have the right to charge you up to $200 for materials we prepare for each special product offering or
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–29)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, in addition to the quarterly marketing support fee, Chesters has the right to charge franchisees for materials prepared for special product offerings or promotions. This charge can be up to $200 for each special product offering or promotion.
This means that while franchisees are required to pay a quarterly marketing fee for general marketing support, they may also incur additional costs for specific promotional materials. These materials are designed and prepared by Chesters for special product offerings, allowing Chesters to promote specific items or deals.
For a prospective franchisee, this implies that marketing expenses can fluctuate based on the number of special promotions Chesters initiates. While the quarterly fee provides a baseline for marketing costs, franchisees need to budget for potential additional charges related to these special promotions. It is important for franchisees to understand how frequently Chesters introduces these special promotions and the typical cost associated with the marketing materials to accurately forecast their marketing expenses.