What happens to a Chesters franchisee's right to use the Marks when the Agreement expires or is terminated?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
You may use only the Marks we designate and may use them only in the manner we authorize.
You must obtain our prior written approval of all your proposed uses of the Marks.
Your right to use the Marks ends automatically when this Agreement expires or is earlier terminated.
We own all of the Marks and the goodwill associated with them and have the sole right to protect and defend them as we deem appropriate.
When this Agreement expires or is terminated, you must immediately stop operating the Restaurant under the Chester's System and Marks; not thereafter represent to the public or hold yourself out as a present or former licensee of ours; immediately and permanently stop using any confidential methods, procedures, and techniques associated with the Chester's System and Marks; follow our instructions to de-identify the Restaurant from the Chester's System within the timeframe we specify; promptly pay all monies due to us and our affiliates; immediately deliver to us (at no cost to us) all Manuals, brochures, invoices, and other materials bearing the Marks.
You will 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.
If you fail to comply with your de-branding obligations within the aforementioned timeframe, you agree to permit our third-party agent access to your premises to remove Chester's Marks from the Location.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, a franchisee's right to use Chesters's Marks ends automatically when the Franchise Agreement expires or is terminated. After the agreement expires or is terminated, the franchisee must immediately stop operating the Restaurant under the Chester's System and Marks. They also cannot represent themselves as a present or former licensee of Chesters.
Furthermore, the franchisee must immediately and permanently stop using any confidential methods, procedures, and techniques associated with the Chester's System and Marks. The franchisee is obligated to follow Chesters's instructions to remove any branding to de-identify the Restaurant from the Chester's System within the timeframe Chesters specifies.
In addition to ceasing use of the Marks, the franchisee must promptly pay all monies due to Chesters and its affiliates and immediately deliver to Chesters (at no cost to Chesters) all Manuals, brochures, invoices, and other materials bearing the Marks. The franchisee has 30 business days to show that they have completed all payment and Restaurant-specific physical de-branding obligations; otherwise, they will be assessed a $10,000 fee. If the franchisee fails to comply with de-branding obligations within the specified timeframe, they agree to permit Chesters's third-party agent access to their premises to remove Chester's Marks from the Location.