What is the obligation of the Chesters franchisee regarding the payment authorization form?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
as we deem appropriate regarding the Restaurant's operation and new developments, techniques, and improvements in areas of Restaurant management, food preparation, sales promotion, and service.
5. Fees.
- (a) Training Fee. You must pay us a $3,500 training fee, due upon the Effective Date of this Agreement. The training fee is not refundable under any circumstances, as it is earned upon receipt. Payment is due by credit card or automated clearing house ("ACH") transfer (and you must sign our payment authorization form attached to this Agreement as Exhibit A).
- (b) Marketing Support Fee. You must pay us a $200 fee four (4) times per year on the dates we designate for a combination of physical marketing materials that we will prepare and periodically send to you, as well as digital marketing campaigns designed to build brand awareness and drive traffic to the Location.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, franchisees are obligated to sign a payment authorization form. This form is attached to the franchise agreement as Exhibit A. The franchisee agrees to pay a $3,500 training fee upon the effective date of the agreement. Payment for this fee is to be made via credit card or ACH transfer.
This payment authorization allows Chesters International, LLC, or a designated third party, to charge the franchisee's designated credit card or initiate debit entries to the franchisee's account. The franchisee must ensure that all ACH transactions comply with U.S. Law.
This requirement ensures that Chesters can collect the initial training fee and potentially other fees throughout the franchise term, such as the marketing support fee and POS technology fee, via automated payments. The franchisee needs to carefully review Exhibit A to understand the terms and conditions of the payment authorization, including the authorized payment methods and any associated fees or limits.