What happens after the third failed in-Restaurant inspection survey for a Chesters franchise?

According to Chesters's 2025 Franchise Disclosure Document, after the third failed in-Restaurant inspection survey, Chesters reserves the right to terminate the Franchise Agreement. If Chesters terminates the agreement, the franchisee's post-term obligations, as detailed in Section 20 of the agreement, will commence.

This means that a Chesters franchisee must maintain high operational standards to avoid multiple failed inspections. The consequences of failing to meet these standards can lead to the termination of the franchise agreement.

Upon termination, the franchisee must immediately cease operating under the Chesters System and Marks, discontinue using any confidential methods, and de-identify the restaurant from the Chesters System within a specified timeframe. The franchisee is also responsible for promptly paying all monies due to Chesters and delivering all manuals and materials bearing the Marks. Failing to comply with these post-term obligations can result in additional fees and legal actions.