If a Chesters franchisee fails to comply with de-branding obligations, does Chesters have the right to access the premises?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
the parties are unable to mutually agree on a resolution within 45 days of entering into such discussions, we may terminate the Agreement effective immediately. In no case may an FME last more than 180 days.
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- Post-Term Obligations. 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 d
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, if a franchisee fails to meet their de-branding obligations after the franchise agreement expires or is terminated, Chesters has the right to send a third-party agent to the premises to remove Chesters's marks from the location.
Following the expiration or termination of the franchise agreement, the franchisee has 30 business days to complete all payment and restaurant-specific physical de-branding obligations. These obligations include stopping operation under the Chesters system, ceasing representation as a current or former licensee, discontinuing use of confidential methods, and delivering manuals and materials bearing Chesters's marks.
If the franchisee fails to comply within the 30-day period, they must pay Chesters a $10,000 fee. More importantly, non-compliance allows Chesters to send a third-party agent to access the premises and remove the Chesters marks. This clause ensures Chesters can protect its brand and system even after a franchise agreement ends, and it underscores the importance of franchisees fulfilling their post-term obligations promptly.