What are the payment options for the de-branding fee if a Chesters franchise agreement expires or is terminated?

According to Chesters's 2025 Franchise Disclosure Document, a de-branding fee of $10,000 is due if a franchisee does not comply with payment and restaurant-specific physical de-branding obligations within 14 business days after the franchise agreement expires or is terminated. The payment options for this fee are credit card or automatic debit. This fee is separate from other potential costs, such as indemnification or liquidated brand damages, which may arise under different circumstances.

This means that if a Chesters franchisee fails to remove branding elements from their restaurant location as required after the franchise agreement ends, they will be charged $10,000. This fee is intended to cover the costs associated with ensuring that the restaurant no longer represents the Chesters brand. Franchisees should be aware of these obligations and the associated costs to avoid incurring this fee.

It is important for prospective Chesters franchisees to understand the specific de-branding requirements outlined in the franchise agreement to ensure compliance upon termination or expiration. The availability of only two payment methods, credit card or automatic debit, means franchisees need to ensure they have access to one of these payment methods to avoid late payment penalties or other consequences. Franchisees should also clarify with Chesters what specific actions constitute compliance with de-branding obligations to avoid any misunderstandings.