What is the limitation on transfer fees that Chesters can collect?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not transfer this Agreement without our prior written consent, which we may grant or withhold as we deem best.
If your controlling ownership interest or actual management control is transferred, or if you sell substantially all of your assets, that will be considered a transfer of this Agreement for purposes of our approval rights.
If such a transfer occurs without our approval, we may terminate this Agreement, effective immediately upon delivery of notice.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
Based on the 2025 Chesters Franchise Disclosure Document, a franchisee cannot transfer their agreement without prior written consent from Chesters, which Chesters may grant or withhold at their discretion. The FDD does not specify a maximum limit or a specific amount for transfer fees. It only states that the franchisee needs Chesters's approval for any transfer of the agreement.
If a franchisee attempts to transfer their ownership or management control without Chesters's approval, Chesters has the right to terminate the agreement immediately. This highlights the importance of obtaining proper consent before making any changes to the ownership or management of the franchise.
Since the FDD does not specify the amount or any limitations regarding transfer fees, it is important for a prospective franchisee to discuss transfer-related costs and conditions with Chesters directly. Understanding these potential costs is crucial for financial planning and future business decisions.