What are the conditions that a Chester's franchisee must meet to be considered for renewal or extension of the license?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Term. This Agreement's term is five (5) years from the Effective Date.
You agree to operate the Restaurant for the full five (5) year term.
We and you may renew or extend the license at the end of the five (5) year term only upon mutual written consent, which neither party is required to give.
We will not consent to any renewal or extension (if we otherwise are inclined to grant a renewal or extension) unless you (a) correct any deficiencies in your operation of the Restaurant that we identify and (b) upgrade, remodel and redecorate the Restaurant's premises as we specify to conform to the current image of a Chester's Restaurant and the Chester's System.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to the 2025 Chesters Franchise Disclosure Document, the term of the franchise agreement is five years from the effective date. Chesters and the franchisee may renew or extend the license at the end of the five-year term, but only upon mutual written consent, which neither party is required to give.
Chesters will only consider granting a renewal or extension if the franchisee meets certain conditions. First, the franchisee must correct any operational deficiencies that Chesters identifies. This implies that Chesters will conduct an evaluation of the restaurant's performance and compliance with the Chesters system.
Second, the franchisee must upgrade, remodel, and redecorate the restaurant's premises to conform to the current image of a Chesters Restaurant and the Chesters System, as specified by Chesters. This condition ensures that the restaurant maintains a consistent brand image and meets Chesters's standards for appearance and functionality. These requirements could involve significant capital expenditure for the franchisee.