How must the Chesters de-branding fee be paid, and what is the deadline for payment after the agreement expires or is terminated?
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 6 — OTHER FEES (FDD pages 14–16)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the de-branding fee is $10,000. This fee is incurred if a franchisee fails to meet the payment and restaurant-specific physical de-branding obligations within a specified timeframe.
The de-branding fee must be paid either by credit card or through automatic debit. This payment method is consistent with other fees outlined in the document, such as the Marketing Support Fee and POS Technology Fee, which also require payment via credit card or automatic debit.
The deadline for paying the de-branding fee is 14 business days after the franchise agreement expires or is terminated. This means a franchisee has just under three weeks to complete both the payment and the physical de-branding of the restaurant to avoid incurring the fee. Failing to comply with both aspects within this timeframe triggers the $10,000 charge.