Where in the Chesters franchise agreement can I find information about the franchisee's post-termination obligations?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
nt.
| Obligation | Section in agreement | Disclosure document item | |
|---|---|---|---|
| a. | Site selection and acquisition/lease | Not Applicable | 11 and |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 22–23)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, including where to find more detailed information in the franchise agreement and other items of the disclosure document. Specifically, post-termination obligations are addressed in Section 20 of the Chesters franchise agreement.
This means that if a franchisee's agreement is terminated, either by the franchisee or Chesters, the obligations that continue after the termination date are detailed in Section 20 of the franchise agreement. These obligations could include things like non-compete clauses, confidentiality agreements, and the return of proprietary information.
Prospective franchisees should carefully review Section 20 of the franchise agreement to fully understand their responsibilities after the franchise relationship ends. Understanding these post-termination obligations is crucial, as failure to comply could result in legal action from Chesters.