What happens if the franchisee fails to provide the required plans and specifications for a Chesters restaurant?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
art 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.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, franchisees are responsible for developing their restaurant in compliance with the Chesters system, ensuring that all plans and specifications meet Chesters's requirements, applicable laws, and lease requirements. Franchisees must provide all plans and specifications to Chesters for review and approval before starting restaurant development.
The FDD excerpt does not explicitly state the consequences of failing to provide the required plans and specifications. However, it does state that franchisees may not open the restaurant for business without Chesters's prior written approval, which is contingent upon the restaurant's satisfactory completion of a restaurant readiness review assessment. Additionally, the franchisee must open the restaurant for business within 180 days after the effective date of the franchise agreement.
Given that Chesters must approve the plans and specifications, failure to provide them would likely delay or prevent the opening of the restaurant. This could lead to a failure to meet the 180-day opening deadline. While the document does not specify penalties for missing this deadline, it is reasonable to assume Chesters would have remedies, potentially including termination of the franchise agreement. A prospective franchisee should clarify the specific consequences of failing to submit plans and specifications with Chesters before signing the agreement.