Must a Chesters franchisee immediately and permanently stop using any confidential methods, procedures, and techniques associated with the Chester's System and Marks after termination or expiration of the agreement?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
the parties are unable to mutually agree on a resolution within 45 days of entering into such discussions, we may terminate the Agreement effective immediately. In no case may an FME last more than 180 days.
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- Post-Term Obligations. When this Agreement expires or is terminated, you must immediately stop operating the Restaurant under the Chester's System and Marks; not thereafter represent to the public or hold yourself out as a present or former licensee of ours; immediately and permanently stop using any confidential methods, procedures, and techniques associated with the Chester's System and Marks; follow our instructions to de-identify the Restaurant from the Chester's System within the timeframe we specify; promptly pay all monies due to us and our affiliates; immediately deliver to us (at no cost to us) all Manuals, brochures, invoices, and other materials bearing the Marks. You will have 30 business days to show that you have completed all payment and Restaurant-specific physical de-branding obligations (the other obligations are immediate and continuing). If you fail to comply with the payment and Restaurant-specific physical de-branding obligations within 30 business days, you must pay us a $10,000 fee. Payment is due by credit card or ACH transfer. If you fail to comply with your de-branding obligations within the aforementioned timeframe, you agree to permit our third-party agent access to your premises to remove Chester's Marks from the Location. All of our and your (and your owners) obligations under this Agreement which expressly or by their
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, a franchisee must immediately and permanently cease using any confidential methods, procedures, and techniques associated with the Chester's System and Marks. This obligation is part of the post-term obligations that a franchisee must adhere to.
In addition to ceasing the use of confidential methods, the franchisee must also stop operating the Restaurant under the Chester's System and Marks and must not represent themselves as a current or former licensee. The franchisee is required to de-identify the Restaurant from the Chester's System within a specified timeframe and return all manuals, brochures, invoices, and other materials bearing the Marks.
The franchisee has 30 business days to complete all payment and Restaurant-specific physical de-branding obligations. Failure to comply within this timeframe results in a $10,000 fee. If the franchisee fails to meet the de-branding obligations, Chesters has the right to access the premises through a third-party agent to remove the Chester's Marks from the location. These post-term obligations survive the termination or expiration of the agreement until they are fully satisfied.