Under what conditions can Chesters terminate the Franchise Agreement with cause?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Provision | Section in franchise or other agreement | Summary | |
|---|---|---|---|
| d. | Termination by franchisee | Not Applicable | You have no contractual right to terminate the Agreement. However, you have the right to terminate the Agreement on any grounds available under applicable state law. |
| e. | Termination by franchisor without cause | Not Applicable | We have no right to terminate your Agreement without cause. |
| f. | Termination by franchisor with cause | 18 and 19 of Agreement | We have right to terminate only if you breach the Agreement. |
| g. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 35–38)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, Chesters can terminate the Franchise Agreement with cause if the franchisee breaches the agreement. Item 18 and 19 of the agreement outline the conditions for termination with cause.
Generally, if a franchisee has a curable default, they will have 20 days to resolve the issue. However, some defaults are not curable, such as unapproved transfers and a third failed restaurant inspection.
It is important for a prospective franchisee to carefully review sections 18 and 19 of the Franchise Agreement to fully understand what constitutes a breach of contract and the specific circumstances under which Chesters can terminate the agreement. Understanding these conditions is crucial for maintaining a healthy franchisor-franchisee relationship and avoiding potential termination.