What must a Chesters franchisee stop doing immediately upon termination or expiration of the agreement?

According to Chesters's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, a franchisee must immediately cease certain activities. Specifically, the franchisee must stop operating the restaurant under the Chesters system and marks, and must not represent themselves as a current or former licensee. They must also immediately and permanently stop using any confidential methods, procedures, and techniques associated with the Chesters system and marks.

In addition to ceasing operations and use of the Chesters system, the franchisee is obligated to follow Chesters's instructions to de-identify the restaurant from the Chesters system within a specified timeframe. The franchisee must also promptly pay all monies due to Chesters and its affiliates. Furthermore, the franchisee must immediately deliver to Chesters all manuals, brochures, invoices, and other materials bearing the marks at no cost to Chesters.

The franchisee has 30 business days to demonstrate completion of all payment and restaurant-specific physical de-branding obligations. Failure to meet the payment and de-branding obligations within this timeframe results in a $10,000 fee. If the franchisee fails to comply with de-branding obligations within the specified timeframe, they agree to allow Chesters's third-party agent access to the premises to remove Chesters marks from the location.

All obligations of both Chesters and the franchisee (including their owners) that, by their nature, are meant to survive the agreement's expiration or termination will remain in full effect until satisfied. This ensures that certain responsibilities and duties continue even after the formal agreement has ended, providing ongoing protection and clarity for both parties.