Under what condition are transfer fees collectable for a Chesters franchise?

According to Chesters's 2025 Franchise Disclosure Document, transfer fees are collectable only to the extent that they reflect Chesters's reasonable estimated or actual costs in executing the transfer. This means that Chesters cannot charge an arbitrary or inflated transfer fee; the fee must be directly tied to the expenses Chesters incurs during the transfer process.

For a prospective franchisee, this is beneficial because it protects them from excessive or unfair transfer fees. If a franchisee decides to sell their Chesters franchise to a third party, the transfer fee they are charged by Chesters must be justifiable based on the actual costs Chesters incurs. This provides some transparency and limits the potential for Chesters to profit excessively from franchise transfers.

This condition is fairly standard in franchising, as many franchise agreements include provisions that limit transfer fees to reasonable costs. Franchisees should still carefully review the specific language in the Chesters franchise agreement regarding transfer fees to fully understand what costs are included and how the fee is calculated.