What else is the Chesters franchisee required to pay besides the payments and the pro-rated payment?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
We will advise you as we deem appropriate regarding the Restaurant's operation and new developments, techniques, and improvements in areas of Restaurant management, food preparation, sales promotion, and service.
5. Fees.
- (a) Training Fee. You must pay us a $3,500 training fee, due upon the Effective Date of this Agreement. The training fee is not refundable under any circumstances, as it is earned upon receipt. Payment is due by credit card or automated clearing house ("ACH") transfer (and you must sign our payment authorization form attached to this Agreement as Exhibit A).
- (b) Marketing Support Fee. You must pay us a $200 fee four (4) times per year on the dates we designate for a combination of physical marketing materials that we will prepare and periodically send to you, as well as digital marketing campaigns designed to build brand awareness and drive traffic to the Location. Payment is due by credit card or ACH transfer. If we decide to implement special offerings or promotions for CHESTER'S Restaurants during the course of the year (e.g., "limited-time-offerings"), we also may send you supplemental marketing materials and other items relating to those special offerings, for each of which we currently may require you to pay us up to $200 per special offering or promotion. We may increase the quarterly Marketing Support Fee upon 90 days' prior written notice to you, although that quarterly fee will not exceed $325 per quarter.
- (c) POS Technology Fee.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, franchisees may incur several other fees in addition to initial franchise fees and pro-rated payments. These additional costs can arise from various aspects of operating the franchise.
Chesters franchisees may be required to pay a $3,500 training fee upon the agreement's effective date. There is also a marketing support fee of $200, due four times per year. Furthermore, franchisees might have to pay a POS Technology Fee, which could range from $250 to $325 per month if they choose to purchase the recommended POS system hardware. This fee also applies if Chesters mandates the POS system as part of the restaurant's required equipment. The monthly POS Technology Fee will not exceed $350.
Chesters also has the right to charge $300 for each required revisit if the restaurant fails any inspection surveys, is temporarily closed, or if the franchisee interferes with the inspection process. If additional training is deemed necessary after a failed inspection, Chesters can charge $1,000 per day for such training. Additionally, if a franchisee operates a competitive business, they must pay liquidated damages of $10,000 to Chesters. These fees underscore the importance of understanding all potential financial obligations before investing in a Chesters franchise.