What payments are the Chesters franchisee required to make under the equipment finance agreement?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
us up to $200 per special offering or promotion. We may increase the quarterly Marketing Support Fee upon 90 days' prior written notice to you, although that quarterly fee will not exceed $325 per quarter.
- (c) POS Technology Fee. If you choose to purchase for the Restaurant the POS System hardware that we recommend (but currently do not require), we estimate that you will have to pay us $250 to $325 per month as a POS Technology Fee. Payment is due by credit card or ACH transfer. You also must pay us a POS Technology Fee if during this Agreement's term we require you to obtain the Chester's POS System for the Restaurant as part of its required operating equipment. We may increase this POS Technology Fee upon 90 days' prior written notice to you, although the monthly fee will not exceed $350.
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Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
Based on the 2025 FDD, the specific payment obligations under an equipment finance agreement for Chesters are not detailed in the provided excerpts. However, the FDD does mention a few fees related to equipment and technology that a franchisee might encounter.
Specifically, if a franchisee chooses to purchase the recommended POS system hardware, they can expect to pay Chesters a POS Technology Fee of $250 to $325 per month. This payment is due via credit card or ACH transfer. Furthermore, if Chesters mandates the use of their POS system during the agreement term as part of the required operating equipment, the franchisee will also be responsible for this POS Technology Fee. The franchisor may increase this POS Technology Fee upon 90 days' prior written notice, although the monthly fee will not exceed $350.
In addition to the POS system, Chesters requires franchisees to buy or lease all required fixtures, furniture, equipment, and signs for the Restaurant and an opening inventory of required and authorized products, materials, and supplies. The FDD excerpts do not specify finance terms or payment schedules for these items. To fully understand the payment obligations under equipment finance agreements, a prospective franchisee should directly ask Chesters for detailed information, including typical financing terms, interest rates, and payment schedules for required equipment.