Chesters
Chesters operates quick-service chicken and sides restaurants in non-traditional locations like convenience stores or sports arenas. Known for its menu offerings, this franchise requires an initial investment of $27,500 to $301,500.
Chesters franchise FAQ
How much does it cost to open one — the total initial investment?
This isn't specified in the excerpts. The FDD provides estimates for various costs but does not give a comprehensive total initial investment figure.
What is the initial franchise fee?
The initial franchise fee is paid upon opening of a new franchise location. This fee is recognized by the company when the franchise agreement becomes effective and typically includes services such as pre-opening support [p.85].
What are the ongoing royalty and advertising fees?
This isn't specified in the excerpts.
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in these excerpts. However, a franchisee may generally renew the franchise agreement upon its expiration, subject to Company approval [p.83].
Can I sell or transfer my franchise, and what does that require?
You cannot transfer your franchise agreement without the franchisor's prior written consent, which they may grant or withhold as they deem best. Additionally, if there is a change in your controlling ownership interest or actual management control, or if you sell substantially all of your assets, it will be considered a transfer requiring the franchisor's approval; failure to obtain this approval could result in termination of the agreement [p.55].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law, as stated on [p.171] and [p.180].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive or protected territory. According to the FDD excerpts, you may face competition from other franchisees, outlets owned by the company, and other channels of distribution controlled by them [p.29, p.168]. The agreement is non-exclusive, and you have no territorial protection [p.31, p.53].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial brand standard training program at the restaurant location to instruct you and your employees on proper procedures and techniques. They may also provide additional training programs as deemed appropriate. Ongoing, they will advise you regarding the operation of the restaurant, including new developments in areas such as management, food preparation, sales promotion, and service [p.53].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were approximately 16 operators of Chester Fried Licensed Restaurants remaining in the United States. According to Exhibit E (p.[47]), which lists all CHESTER'S Restaurant franchisees as of that date and those who had outlets terminated, cancelled, or not renewed from January 1, 2024, to December 31, 2024, there is no specific number given for closed or terminated franchised outlets.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if you are purchasing one, but they do not make representations about future financial performance or past performance of company-owned or franchised outlets. Financial performance information can be included in the disclosure document if there is a reasonable basis for it and if specific conditions are met, such as providing actual records of an existing outlet or supplementing the information provided in Item 19. [p.38]
What am I restricted to selling, and where must I buy supplies?
You are required to buy all food items, ingredients, equipment, furnishings, supplies, materials, and other items used or offered for sale at the Restaurant only from suppliers approved by the franchisor. This includes the right of the franchisor to limit certain trade-secret or proprietary food products and other branded items to be sourced exclusively from them, their affiliates, or specified sources [p.19]. You are restricted to advertising away from your location if all sales are made at that location, but you can solicit sales for delivery to a remote location with prior written approval [p.29]. This isn't specified in the excerpts regarding what you are specifically allowed to sell beyond these restrictions.