Does Chesters have the right to periodically change required use of their designated POS system?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 35)
What This Means (2025 FDD)
According to Chesters' 2025 Franchise Disclosure Document, Chesters has the right to periodically change the required use of their designated Point of Sale (POS) system. Chesters can modify equipment specifications, including the required POS system. There are no limits on Chesters' right to make these changes. Franchisees must comply with these changes once Chesters provides notice.
While franchisees currently have no obligation to buy or use a new electronic cash register or computer system, Chesters has the right to require franchisees to obtain and use specific computer hardware, software, and a point-of-sale system. The POS system must allow for 24/7 electronic communication between the restaurant and Chesters. The cost of the POS system is estimated to range from $2,000 to $6,000, depending on the restaurant's needs.
Franchisees must also pay a POS Technology Fee if Chesters requires them to obtain the Chesters POS System as part of the restaurant's required operating equipment. Chesters may increase this fee with 90 days' prior written notice, but the monthly fee will not exceed $350. The estimated cost of ongoing maintenance, repairs, upgrades, and updates for the POS System is approximately $250 to $325 per month, which is covered by the POS Technology Fee. Chesters will have independent, unlimited access to the information the system generates, excluding employee-related information.