How long does a Chesters franchisee have to show they have completed all payment and Restaurant-specific physical de-branding obligations after termination?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
aurant 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, a franchisee has 30 business days to demonstrate completion of all payment and restaurant-specific physical de-branding obligations following the termination or expiration of the franchise agreement. These obligations include settling any outstanding payments owed to Chesters and removing all branding and signage from the restaurant location.
If the franchisee fails to meet these obligations within the specified 30 business days, Chesters will impose a fee of $10,000. This fee serves as a financial penalty for non-compliance and is in addition to any other amounts the franchisee may owe to Chesters. Payment of this fee is required to be made via credit card or ACH transfer.
Furthermore, if the franchisee does not fulfill the de-branding obligations within the given timeframe, they must allow Chesters's designated third-party agent to access the premises to remove all Chesters's trademarks and branding. This provision ensures that Chesters can take necessary steps to protect its brand identity and prevent any continued association with the terminated franchise location. The other post-term obligations are expected to be immediate and continuing.