After termination or expiration of the Chesters franchise agreement, what timeframe does Chesters specify for the franchisee to de-identify the Restaurant from the Chesters System?
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 physical de-branding obligations (the other obligations are immediate and continuing). If you fail to comply with the payment and Restaurant-specific physical de-branding obligations within 30 business days, you must pay us a $10,000 fee. Payment is due by credit card or ACH transfer. If you fail to comply with your de-branding obligations within the aforementioned timeframe, you agree to permit our third-party agent access to your premises to remove Chester's Marks from the Location.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, franchisees have specific obligations regarding de-identification of the restaurant. Franchisees must immediately cease operating under the Chesters system and marks and discontinue representing themselves as current or former licensees. They must also immediately stop using any confidential methods, procedures, and techniques associated with the Chesters system.
Chesters specifies that franchisees have 30 business days to complete all payment and restaurant-specific physical de-branding obligations. Failure to meet these obligations within the specified timeframe results in a $10,000 fee. Chesters retains the right to have a third-party agent access the premises to remove Chesters marks if the franchisee fails to comply with de-branding obligations within the 30 business days.
It is important to note that other obligations, beyond payment and physical de-branding, are immediate and continuing. All obligations of both Chesters and the franchisee that survive the agreement's expiration or termination will remain in effect until fully satisfied or naturally expired. This ensures a clean break and protects Chesters's brand and system after a franchise agreement ends.