After termination or expiration of the Chesters franchise agreement, does the franchisee have to pay for delivering all Manuals, brochures, invoices, and other materials bearing the Marks to Chesters?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to the 2025 Chesters Franchise Disclosure Document, upon the expiration or termination of the franchise agreement, the franchisee is responsible for delivering specific materials to Chesters. The franchisee must immediately deliver to Chesters all Manuals, brochures, invoices, and other materials bearing the Marks. This delivery must be made at no cost to Chesters.
This obligation is part of the franchisee's post-term responsibilities, ensuring that all branded materials are returned to Chesters and are no longer in the possession of the former franchisee. This helps to protect Chesters' brand integrity and prevent unauthorized use of its trademarks and proprietary materials.
In addition to returning the specified materials, the franchisee must also cease operating under the Chesters system and marks, de-identify the restaurant from the Chesters system, and promptly pay all monies due to Chesters and its affiliates. Failure to comply with these obligations, including the return of materials, within 30 business days may result in a $10,000 fee. The franchisee is responsible for the costs associated with returning these items to Chesters.