Under what condition is a Chesters franchisee not required to conduct advertising on DOT signs?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
You must advertise the Restaurant, at your own expense, on a reasonable number of DOT signs on nearby interstates. However, if no such DOT signs are available for such advertising activities as of this Agreement's Effective Date, you need not conduct this type of advertising until the DOT signs become available. We and you periodically will discuss and reasonably determine the availability of DOT signs for advertising.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, a franchisee is generally required to advertise their restaurant on a reasonable number of DOT signs on nearby interstates at their own expense. However, this requirement is waived if no DOT signs are available for advertising as of the effective date of the franchise agreement. In this case, the franchisee does not need to conduct this type of advertising until DOT signs become available.
Chesters and the franchisee will periodically discuss and reasonably determine the availability of DOT signs for advertising. This implies an ongoing assessment of the advertising landscape to ensure compliance when possible.
This clause provides a conditional exception to the advertising requirements, offering some flexibility to franchisees in areas where DOT sign advertising is not initially feasible. However, it also suggests that franchisees should be prepared to invest in DOT sign advertising should it become an option during the term of their franchise agreement.