What happens if a Chesters franchisee chooses not to purchase the recommended POS System hardware?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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. You may not open the Restaurant for business without our prior written approval, which approval is subject to your Restaurant's satisfactory completion of our restaurant readiness review assessment.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, initially, purchasing the recommended POS system hardware is optional. If a franchisee chooses to purchase the recommended POS system hardware, they will have to pay Chesters a POS Technology Fee of $250 to $325 per month.
However, Chesters retains the right to mandate the use of their POS system during the agreement term. If Chesters requires the POS system as part of the restaurant's operating equipment, the franchisee must then purchase it and pay a POS Technology Fee, which will not exceed $350 per month.
Furthermore, if the franchisee purchases or is required to obtain the POS system, they must provide Chesters with independent, unlimited access to the information generated by the system, excluding employee-related information. Chesters also has the right to modify equipment specifications, including requiring the use of the Chesters POS System, with notice to the franchisee.
In summary, while the POS system is currently optional, Chesters can make it mandatory during the franchise term. Choosing not to purchase it when it is recommended means avoiding the initial monthly fee, but franchisees must be prepared to adopt the system if Chesters later requires it.