Does Chesters have the right to inspect the collateral?

According to Chesters's 2025 Franchise Disclosure Document, Chesters, along with its agents and representatives, has the right to inspect the collateral provided by the franchisee. This inspection can occur at any time during regular business hours. To facilitate these inspections, Chesters is granted access to the location where the collateral is stored.

This provision allows Chesters to ensure that the franchisee is maintaining the collateral in good condition and adhering to the standards set forth in their agreement. It also allows Chesters to verify the location of the collateral, as franchisees are required to maintain records of each item's location and report it upon request. The franchisee cannot change the location of the collateral without prior written consent from Chesters.

For a prospective Chesters franchisee, this means they must be prepared to allow inspections of any collateral used in their business operations during regular business hours. They should also maintain accurate records of the collateral's location and seek approval before moving it. Failure to comply with these requirements could potentially lead to a breach of the franchise agreement.