What are the Chesters franchisee's obligations upon termination or non-renewal of the franchise agreement?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary | |
|---|---|---|---|
| i. | Franchisee's obligations on termination/ non-renewal | 20 of Agreement | Obligations include cease operating Restaurant and representing yourself as present or former franchisee; cease using confidential information, Marks, and trade dress; complete de-identification; and payment of amounts due. Also see (r) below. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 35–38)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, Item 17 outlines the franchisee's obligations upon termination or non-renewal of the franchise agreement. Specifically, the franchisee must cease operating the Restaurant and stop representing themselves as a current or former Chesters franchisee.
Additionally, the franchisee is obligated to discontinue the use of Chesters's confidential information, Marks, and trade dress. This means they can no longer use any of Chesters's branding, logos, or proprietary information in their business operations.
Another obligation is to complete de-identification, which likely involves removing all Chesters signage and branding from the restaurant location to ensure it no longer appears to be a Chesters franchise. Finally, the franchisee is responsible for the payment of any outstanding amounts due to Chesters. It is important to note that section 20 of the agreement and item (r) below also apply to franchisee obligations upon termination or non-renewal.