What is the Chesters franchisee's responsibility regarding the payment of the number of payments in the amount shown?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
as we deem appropriate regarding the Restaurant's operation and new developments, techniques, and improvements in areas of Restaurant management, food preparation, sales promotion, and service.
5. Fees.
- (a) Training Fee. You must pay us a $3,500 training fee, due upon the Effective Date of this Agreement. The training fee is not refundable under any circumstances, as it is earned upon receipt. 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).
- (b) Marketing Support Fee. 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 we decide to implement special offerings or promotions for CHESTER'S Restaurants during the course of the year (e.g., "limited-time-offerings"), we also may send you supplemental marketing materials and other items relating to those special offerings, for each of which we currently may require you to pay us up to $200 per special offering or promotion. We may increase the quarterly Marketing Support Fee upon 90 days' prior written notice to you, although that quarterly fee will not exceed $325 per quarter.
- (c) POS Technology Fee. 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. 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' 2025 Franchise Disclosure Document, franchisees have several payment responsibilities to Chesters, with specific terms for amounts and payment methods. A franchisee must pay a $3,500 training fee upon the Effective Date of the Franchise Agreement, which is non-refundable. Additionally, franchisees must pay a $200 marketing support fee four times per year on dates designated by Chesters. These marketing fees cover physical and digital marketing materials. Chesters may also require franchisees to pay up to $200 for supplemental marketing materials related to special offerings or promotions.
If a franchisee chooses to purchase the recommended POS system, they will have to pay Chesters a POS Technology Fee of $250 to $325 per month. Even if the franchisee doesn't initially purchase the POS system, they must pay the POS Technology Fee if Chesters later requires them to obtain the Chester's POS System as part of the required operating equipment. Chesters may increase the quarterly Marketing Support Fee upon 90 days' prior written notice, but it will not exceed $325 per quarter, and the monthly POS Technology Fee will not exceed $350. Payment for all these fees is due via credit card or ACH transfer.
Chesters also has the right to charge the franchisee $300 for each required revisit if the Restaurant fails any inspection surveys, is temporarily closed, or the franchisee interferes with the inspection process. Furthermore, Chesters can charge $1,000 per day for any additional training they deem necessary if the Restaurant fails an inspection. If a franchisee violates the restriction on operating a Competitive Business, they must pay Chesters liquidated damages of $10,000. Payment for revisits, additional training, and violations are due by credit card or ACH transfer upon notification.