After termination or expiration of the Chesters franchise agreement, what must a former Chesters franchisee not represent to the public?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
the parties are unable to mutually agree on a resolution within 45 days of entering into such discussions, we may terminate the Agreement effective immediately. In no case may an FME last more than 180 days.
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- Post-Term Obligations. When this Agreement expires or is terminated, you must immediately stop operating the Restaurant under the Chester's System and Marks; not thereafter represent to the public or hold yourself out as a present or former licensee of ours; immediately and permanently stop using any confidential methods, procedures, and techniques associated with the Chester's System and Marks; follow our instructions to de-identify the Restaurant from the Chester's System within the timeframe we specify; promptly pay all monies due to us and our affiliates; immediately deliver to us (at no cost to us) all Manuals, brochures, invoices, and other materials bearing the Marks. You will have 30 business days to show that you have completed all payment and Restaurant-specific
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, after the franchise agreement expires or is terminated, a former franchisee must immediately cease operating the restaurant under the Chesters system and marks. They are prohibited from representing themselves to the public as a current or former licensee of Chesters. This means they cannot give the impression that they are still affiliated with the Chesters brand in any way.
Furthermore, the former franchisee must immediately and permanently stop using any confidential methods, procedures, and techniques associated with the Chesters system and marks. They must also follow Chesters's instructions to remove any branding or identification that associates the restaurant with the Chesters system within a specified timeframe. This includes de-identifying the restaurant to ensure no association with the Chesters brand remains.
In addition to ceasing operations and representation, the franchisee is obligated to promptly pay all outstanding monies owed to Chesters and its affiliates. They must also return all manuals, brochures, invoices, and other materials bearing Chesters's marks at no cost to Chesters. The franchisee has 30 business days to demonstrate that they have fulfilled all payment and restaurant-specific physical de-branding obligations. Failure to comply within this timeframe results in a $10,000 fee. If the franchisee does not meet the de-branding obligations within the given timeframe, they agree to allow Chesters's agent to access the premises to remove the marks.