Does Chesters carry commercial insurance for risks of loss?

According to Chesters's 2025 Franchise Disclosure Document, Chesters carries commercial insurance for risks of loss. The FDD specifies that Chesters is exposed to potential losses related to torts, theft, damage to assets, errors, omissions, employee injuries, material disasters, and product liability. To mitigate these risks, Chesters maintains commercial insurance coverage.

This insurance coverage is a benefit to franchisees because it protects Chesters from significant financial losses due to unforeseen events. If Chesters did not have this coverage, a major incident could negatively impact the financial stability of the company, which could in turn affect its ability to support its franchisees.

It is common practice for franchisors to maintain commercial insurance to protect against various risks. Prospective franchisees should confirm the specific types and amounts of coverage Chesters carries, as well as understand what types of incidents are covered and any potential deductibles or exclusions. This information can help franchisees assess the overall financial health and risk management practices of the franchisor.