Does Chesters require franchisees to participate in advertising funds or cooperatives?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of fee* | Amount | Due Date | Remarks |
|---|---|---|---|
| Marketing Support Fee | $200 per quarter We have the right to increase this fee upon 90 days’ prior written notice to you, although the quarterly fee will not exceed $325 | 4 times per year on the dates we designate Payment is due by credit card or automatic debit | This is for physical or digital samples of marketing materials we will prepare and periodically send you. We do not require your participation in advertising funds or cooperatives. |
| Marketing Support Fee for Special Offerings or Promotions | Not to exceed $200 per special offering or promotion | When billed Payment is due by credit card or automatic debit | Due if we implement special offerings or promotions for CHESTER’S Restaurants during the franchise term. |
Source: Item 6 — OTHER FEES (FDD pages 14–16)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, franchisees are not required to participate in advertising funds or cooperatives. However, franchisees are required to pay a Marketing Support Fee of $200 per quarter, which may increase to a maximum of $325 with 90 days' prior written notice. This fee is used for physical or digital samples of marketing materials that Chesters will prepare and periodically send to franchisees.
Chesters also has the right to implement special offerings or promotions for CHESTER’S Restaurants during the franchise term, which would incur a Marketing Support Fee not to exceed $200 per special offering or promotion. These fees are due when billed and payable via credit card or automatic debit.
While Chesters does not mandate participation in advertising funds or cooperatives, franchisees should be aware of the Marketing Support Fees and the potential for additional fees related to special offerings or promotions. It is important for prospective franchisees to factor these costs into their financial projections and understand the terms and conditions associated with these fees.