Under what circumstances are Chesters franchisees required to upgrade the POS System or obtain service and support?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
You must upgrade the POS System, and/or obtain service and support, as we require or when necessary because of technological developments, including complying with PCI Data Security Standards. There are no contractual limitations on the frequency and cost of this obligation. We will have independent, unlimited access to the information the system generates, although not to employee-or employment-related information for your Restaurant's employees.
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, franchisees must upgrade their POS system and/or obtain service and support when required by Chesters or when necessary due to technological developments, including complying with PCI Data Security Standards. The FDD specifies that there are no contractual limitations on the frequency and cost of this obligation.
Chesters estimates the cost of ongoing maintenance, repairs, upgrades, and updates for the POS System to be approximately $250 to $325 per month, which is covered by the POS Technology Fee. Chesters retains the right to increase the POS Technology Fee upon 90 days' prior written notice, although the monthly fee will not exceed $350.
This means that a Chesters franchisee needs to be prepared for potential, but currently undefined, expenses related to POS system upgrades and maintenance to keep up with technological advancements and security standards. While the monthly POS Technology Fee covers some of these costs, Chesters has the right to increase this fee (up to a limit), and the franchisee bears the risk of potentially frequent and costly upgrades being mandated.