factual

What two components make up the payments Chesters agrees to pay?

Chesters Franchise · 2025 FDD

Answer from 2025 FDD Document

f ingredients; embargoes, trade restrictions, or other acts of government; explosions, riots, wars, or acts of terrorism; strikes, lockouts, or labor disruptions; and shortages of transportation equipment, fuel, or labor (each, a "FME"). Notwithstanding anything to the contrary herein, if you are unable fulfill your obligations in this Agreement herein due to an FME, we agree to engage in good faith discussions to come to a mutually acceptable resolution; provided that if 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.

    1. 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 obl

Source: Item 23 — **RECEIPTS (FDD pages 48–197)

What This Means (2025 FDD)

Based on the 2025 Chesters Franchise Disclosure Document, Chesters agrees to engage in good faith discussions to come to a mutually acceptable resolution if a franchisee is unable to fulfill their obligations due to a Force Majeure Event (FME). However, if the parties cannot agree on a resolution within 45 days of entering such discussions, Chesters may terminate the agreement immediately.

If the agreement is terminated, the franchisee must promptly pay all monies due to Chesters and its affiliates. Additionally, the franchisee must immediately deliver to Chesters all manuals, brochures, invoices, and other materials bearing the Marks at no cost to Chesters.

If the franchisee fails to comply with payment and restaurant-specific physical de-branding obligations within 30 business days, they must pay Chesters a $10,000 fee. Payment is due by credit card or ACH transfer.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.