What is the Chesters franchisee required to pay in addition to the standard payments?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
se for the Restaurant the POS System hardware that we recommend (but currently do not require), we estimate that you will have to pay us $250 to $325 per month as a POS Technology Fee. Payment is due by credit card or ACH transfer. You also must pay us a POS Technology Fee if during this Agreement's term we require you to obtain the Chester's POS System for the Restaurant as part of its required operating equipment. We may increase this POS Technology Fee upon 90 days' prior written notice to you, although the monthly fee will not exceed $350.
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- Restaurant Development and Restaurant Readiness Review. You are responsible for developing the Restaurant in compliance with the Chester's System and ensuring that all plans and specifications comply with our requirements, applicable laws, and lease requirements. You must provide, and we have the right to review and approve, all plans and specifications before you begin developing the Restaurant. You must buy or lease all required fixtures, furniture, equipment, and signs for the Restaurant and an opening inventory of required and authorized products, materials, and supplies.
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 additional fees beyond the standard franchise payments. These include a POS Technology Fee, additional training fees, revisit fees for failed inspections, liquidated damages for operating a competitive business, and costs associated with restaurant development and readiness. These fees are intended to cover specific situations such as technology implementation, performance issues, breaches of contract, and ensuring the restaurant meets Chesters's standards.
Chesters franchisees may be required to pay a POS Technology Fee, which can increase with 90 days' notice, but will not exceed $350 per month. If Chesters deems it necessary to conduct more than one restaurant readiness review, the franchisee may be charged for the costs incurred. Additionally, if a Chesters restaurant fails an inspection, the franchisee may be charged $300 for each required revisit. A failed inspection that requires additional training can result in a fee of $1,000 per day for the necessary training.
Furthermore, if a Chesters franchisee violates the restriction on operating a competitive business, they must pay liquidated damages of $10,000. These liquidated damages are considered a reasonable estimate of the brand damages Chesters will incur. These payments are in addition to other amounts due under the franchise agreement and are not considered a penalty but rather compensation for damages.
Prospective franchisees should carefully consider these potential additional costs and ensure they have sufficient capital to cover these expenses if they arise. Understanding the conditions under which these fees are charged is crucial for managing the financial aspects of the franchise and maintaining compliance with Chesters's standards.