Does Chesters have to spend any amount on advertising in a franchisee's market area?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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You also must advertise your Restaurant at your own expense on a reasonable number of DOT signs on nearby interstates. However, if no DOT signs are available for advertising activities, you need not conduct this advertising until they become available. We and you periodically will discuss and reasonably determine the availability of DOT signs for advertising. We need not spend any amount on advertising in your market area. In all cases, we have the right to review and approve (or disapprove) all advertising and promotional materials you propose to use. You have no right to use any advertising or promotional materials we have not approved or have disapproved. While there is no contractual timeframe within which we must respond, we expect to respond to you within 30 days. You cannot without our prior written approval develop, maintain, or authorize any website that mentions the Marks. [Agreement — Sections 8 and 12]
There currently are no advertising cooperatives or franchisee advertising councils in our System. If we choose to form them (although our Agreement does not address this issue), we likewise would have the power at any time to change, dissolve, or merge them.
ITEM 12 TERRITORY
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You also do not have any type of non-exclusive territory.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–29)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, Chesters is not required to spend any amount on advertising in a franchisee's market area. However, franchisees are required to advertise their restaurant at their own expense using a reasonable number of DOT signs on nearby interstates, if available. If DOT signs are unavailable, this advertising is not required until they become available.
Chesters and the franchisee will periodically discuss the availability of DOT signs for advertising. All advertising and promotional materials the franchisee proposes to use are subject to Chesters's review and approval. Franchisees cannot use any advertising or promotional materials that Chesters has not approved or has disapproved.
Chesters also charges franchisees a quarterly marketing support fee of $200, which may increase with 90 days' written notice, but will not exceed $325. This fee covers physical marketing materials prepared and sent to the franchisee, as well as digital marketing campaigns. Chesters also has the right to charge franchisees up to $200 for materials prepared for each special product offering or promotion.