Does Chesters require the use of a designated POS system?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: OTHER FEES]
| Type of fee* | Amount | Due Date | Remarks |
|---|---|---|---|
| POS Technology Fee | $250-$325 per month We have the right to increase this fee upon 90 days’ prior written notice to you, although the monthly fee will not exceed $350 | Monthly on the dates we designate (beginning with the month in which you buy the POS system) Payment is due by credit card or automatic debit | Due if you buy the POS system hardware we currently recommend (but have the right to require you to buy during the franchise term). |
[Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]
You must buy all food items, ingredients, equipment, furnishings, supplies, materials, and other items used or offered for sale at the Restaurant only from suppliers (including manufacturers, distributors, and other sources) that satisfy our then-current standards and specifications; possess adequate quality controls and capacity to supply your needs promptly and reliably; and have received our approval.
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]
You currently have no obligation to buy or use any new electronic cash registers or computer system for the Restaurant and may use your current systems. However, you must send us monthly reports regarding the Restaurant's sales, labor costs, and profits in the format we specify. [Agreement — Section 15]
We have the right to require you to obtain (but currently only recommend that you obtain) and use the computer hardware and software, point-of-sale system, printers, tablets, smartphones, and other computer-related accessories and peripheral equipment we periodically specify (the "POS System").
[Item 16: RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL]
We have the right periodically to change required and/or authorized menu items and services and equipment specifications (including required use of our designated POS system).
[Item 23: ] **RECEIPTS]
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.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 35)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, franchisees are not currently required to use a specific POS system, but Chesters retains the right to mandate one in the future. Item 16 states that Chesters has the right to periodically change equipment specifications, including requiring the use of their designated POS system. Item 8 confirms that franchisees must buy all equipment from suppliers that meet Chesters' standards and specifications. Item 11 states that while there is no current obligation to buy or use a new electronic cash register or computer system, Chesters has the right to require franchisees to obtain and use a specified POS system in the future.
If Chesters mandates a specific POS system, the franchisee would also be responsible for a POS Technology Fee. Item 23 indicates that franchisees must pay a POS Technology Fee if Chesters requires them to obtain the Chester's POS System as part of its required operating equipment. Item 6 states that the POS Technology Fee ranges from $250 to $325 per month, but this fee could increase with 90 days' prior written notice, although the monthly fee will not exceed $350.
While Chesters currently recommends, but does not require, a specific POS system, they may mandate one during the franchise term. If implemented, this would necessitate purchasing the designated system and incurring the monthly POS Technology Fee. Prospective franchisees should consider the potential cost and operational changes associated with a mandated POS system when evaluating the Chesters franchise opportunity.