What are the consequences if a Chesters franchisee fails to meet the de-branding obligations after the franchise agreement expires or is terminated?
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 | $10,000 | As incurred | Due if you or your owners violate non-competition restrictions described in Items 17(q) and (r). |
| Damages | |||
| 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, a franchisee will be charged a de-branding fee if they do not comply with the payment and restaurant-specific physical de-branding obligations within 14 business days after the franchise agreement expires or is terminated.
The de-branding fee is $10,000. This fee is due as incurred and must be paid via credit card or automatic debit.
This means that upon termination or expiration of the franchise agreement, a franchisee must ensure all branding is removed from the restaurant within the specified timeframe to avoid incurring this significant fee. This includes not only physical de-branding but also ensuring all payments are up to date. The fee is uniformly imposed, as noted in Item 6.