What is the Chesters franchisee's obligation regarding the payment of the number of payments in the amount shown?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
For each violation of this restriction on the operation of a Competitive Business, you must pay us in a lump sum, on or before the date we specify, liquidated damages equal to Ten-Thousand Dollars ($10,000). Payment is due by credit card or ACH transfer.
You 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.
We have the right to charge you $300 for each required revisit.
Payment is due by credit card or ACH transfer upon delivery of notice to you.
You must pay us a $3,500 training fee, due upon the Effective Date of this Agreement.
Payment is due by credit card or automated clearing house ("ACH") transfer (and you must sign our payment authorization form attached to this Agreement as Exhibit A).
You must pay us a $200 fee four (4) times per year on the dates we designate for a combination of physical marketing materials that we will prepare and periodically send to you, as well as digital marketing campaigns designed to build brand awareness and drive traffic to the Location.
Payment is due by credit card or ACH transfer.
If you choose to purchase 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.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, franchisees have several payment obligations to Chesters International, LLC. These payments cover various aspects of the franchise operation, including training, marketing support, POS technology, and potential penalties for non-compliance. Understanding these obligations is crucial for prospective franchisees to accurately assess the financial demands of operating a Chesters franchise.
Chesters franchisees must pay a $3,500 training fee upon the effective date of the franchise agreement, which is non-refundable. Additionally, franchisees are required to pay a $200 marketing support fee four times per year for marketing materials and digital campaigns. This fee may increase to a maximum of $325 per quarter with 90 days' prior written notice. If a franchisee chooses to use Chesters' recommended POS system, they can expect to pay between $250 and $325 per month as a POS Technology Fee. All of these payments are due via credit card or ACH transfer.
Furthermore, Chesters imposes financial penalties for specific violations. For instance, if a franchisee violates restrictions on operating a competitive business, they must pay $10,000 in liquidated damages. Similarly, failure to comply with de-branding obligations after the termination of the franchise agreement results in a $10,000 fee. Chesters also charges $300 for each required revisit if a restaurant fails inspection surveys. These fees are also payable by credit card or ACH transfer upon notice.
These financial obligations highlight the importance of carefully reviewing the franchise agreement and understanding all associated costs. Prospective franchisees should factor these fees and potential penalties into their financial projections to ensure they can meet their financial obligations to Chesters. Additionally, franchisees should be aware of the conditions under which these payments are required to avoid unexpected financial burdens.