If a Chesters franchisee fails to comply with de-branding obligations, who is permitted access to the premises to remove Chester's Marks?

According to Chesters's 2025 Franchise Disclosure Document, if a franchisee fails to comply with de-branding obligations within a specified timeframe, they agree to permit Chesters' third-party agent access to their premises to remove Chesters' Marks from the location.

This means that after the franchise agreement expires or is terminated, the franchisee has a limited time to remove all Chesters branding from the restaurant. Should they fail to do so, Chesters has the right to send a third-party to the location to complete the de-branding process. This is a measure to protect Chesters' brand and ensure that former franchisees do not continue to operate as if they are still part of the Chesters system.

The franchisee is initially given 30 business days to complete both payment and restaurant-specific physical de-branding obligations. Failure to meet these obligations within this timeframe results in a $10,000 fee. However, non-payment is not the trigger for the third-party agent to be sent to the premises; it is the failure to comply with the de-branding obligations within the allotted time.

This clause highlights the importance of franchisees diligently adhering to the post-termination obligations outlined in the franchise agreement to avoid further intervention and potential costs. Franchisees should be aware of the specific de-branding requirements and ensure they are completed promptly upon termination or expiration of the agreement.