What is 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 7 — **ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, franchisees may have to pay a de-branding fee of $10,000. This fee is incurred if the 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. The 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. Failing to complete this process within the specified timeframe can trigger the de-branding fee.
This fee is in addition to other potential costs, such as indemnification and liquidated brand damages, which can also amount to $10,000. Franchisees should be aware of these potential expenses when considering the financial implications of exiting the Chesters system, whether through choice or termination.