What are the conditions that trigger the de-branding fee for a Chesters franchise?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of fee* | Amount | Due Date | Remarks |
|---|---|---|---|
| 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 7 — **ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, a de-branding fee of $10,000 is due if a franchisee fails to meet specific obligations after the franchise agreement expires or is terminated. This fee is incurred if the franchisee does not comply with both payment obligations and the physical de-branding requirements specific to the restaurant.
The de-branding process must be completed within 14 business days following the expiration or termination of the franchise agreement. The method of payment for this fee is explicitly stated as either credit card or automatic debit, providing clarity on how Chesters expects this payment to be made.
This de-branding fee is a notable consideration for prospective franchisees as it highlights the importance of adhering to the franchisor's standards even after the formal agreement concludes. Failing to promptly remove Chesters's branding and settle any outstanding payments can result in this significant charge. Franchisees should ensure they understand and are prepared to meet these obligations to avoid incurring the $10,000 fee.