Does Chesters have the right to change equipment specifications for Chesters restaurants?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
MAY SELL
You must offer and sell all menu items and products, and perform all services, we periodically require for CHESTER'S Restaurants operated at your type of location. You have no right to offer or sell any menu items or products, or perform any services, we have not authorized. 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). There are no limits on our right to do so. Once a menu item, product, or service has become unauthorized, your Restaurant no longer may offer or sell it. You must operate the Restaurant in compliance with all applicable federal, state, and local laws, ordinances, and regulations. You are not limited in the customers with whom the Restaurant does business from its premises.
ITEM 17 RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION
THE FRANCHISE RELATIONSHIP
This table lists certain important provisions of the franchise and related agreements. You should read these provisions in the agreements attached to this disclosure document.
| Provision | Section in franchise or other agreement | Summary | |
|---|---|---|---|
| d. | Termination by franchisee | Not Applicable | You have no contractual right to terminate the Agreement. However, you have the right to terminate the Agreement on any grounds available under applicable state law. |
| e. |
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, Chesters retains the right to modify equipment specifications for its restaurants. This includes the authority to mandate the use of a designated Point of Sale (POS) system. Chesters can change required product offerings and equipment specifications, with such changes taking effect upon notification to the franchisee. There are no limits on Chesters's right to change required and/or authorized menu items and services and equipment specifications.
This provision means that as a Chesters franchisee, you must adapt to any changes Chesters makes to required equipment. This could involve purchasing new equipment or upgrading existing systems to comply with Chesters's current standards. The FDD states that Chesters has the right to change equipment specifications, including requiring the use of a designated POS system. If Chesters requires franchisees to obtain the Chester's POS System, franchisees must pay a POS Technology Fee. Chesters may increase this POS Technology Fee upon 90 days' prior written notice, although the monthly fee will not exceed $350.
While such changes aim to maintain brand consistency and quality, they can also represent an unanticipated expense for franchisees. Franchisees need to factor in the potential costs of these changes when assessing the financial viability of the franchise. It is common in franchising for franchisors to update standards and specifications, but the frequency and cost of these changes can vary significantly. Prospective franchisees should inquire about the typical frequency and scope of equipment specification changes to better understand the potential financial impact.