What is the Chesters franchisee required to do regarding information conveyed to the secured party?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
You must send us monthly reports regarding the Restaurant's sales, labor costs, and profits in the format we specify (other than employeerelated information). If you purchase the Restaurant POS System hardware that we recommend (but do not currently require), or 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, you also must pay us the POS
Technology Fee we specify in Section 5(c) and provide us with independent, unlimited access to the information the System generates (autriough not to employee- or employment-related information for your Restaurant's employees).
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
The 2025 Chesters Franchise Disclosure Document does not specify requirements for franchisees regarding information conveyed to a secured party. The document does mention that franchisees must send monthly reports regarding the Restaurant's sales, labor costs, and profits in the format Chesters specifies, excluding employee-related information.
Additionally, if a franchisee purchases the Restaurant POS System hardware that Chesters recommends, or if Chesters requires the franchisee to obtain the Chester's POS System, the franchisee must pay the POS Technology Fee specified in Section 5(c) and provide Chesters with independent, unlimited access to the information the System generates, again excluding employee- or employment-related information.
Because the FDD does not discuss requirements related to secured parties, prospective franchisees should ask Chesters about any obligations to provide information to secured parties, what information needs to be provided, and how frequently it must be reported.