What is the deadline for a Chesters franchisee to pay the de-branding fee, and what payment methods are accepted?
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 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 required if a franchisee fails to meet their payment and restaurant-specific physical de-branding obligations. This fee is due within 14 business days after the franchise agreement expires or is terminated.
Chesters requires that the de-branding fee be paid either by credit card or through automatic debit. This requirement ensures that Chesters can quickly and efficiently collect the funds necessary to cover any costs associated with a franchisee's failure to properly de-brand their location.
It is important for prospective franchisees to understand these obligations and ensure they have a plan in place to meet them in the event that their franchise agreement expires or is terminated. Failure to do so could result in the assessment of the $10,000 de-branding fee.