What constitutes a 'transfer' of a Chesters franchise by the franchisee?

According to Chesters's 2025 Franchise Disclosure Document, a transfer by the franchisee is defined broadly. It includes not only the transfer of the franchise agreement itself, but also the transfer of the franchisee's controlling ownership interest in the franchise, and the transfer of the franchisee's actual management control over the Chesters business. This definition is found in Section 18 of the franchise agreement.

This broad definition of 'transfer' is significant for prospective Chesters franchisees because it means that any change in ownership or management control, even if the franchise agreement itself is not formally assigned, could be considered a transfer. This is important because, as the FDD outlines, franchisees do not have the right to transfer their franchise without prior written consent from Chesters. Chesters has the right to grant or withhold this consent as they deem best.

Because Chesters maintains broad discretion over transfer approvals, a franchisee looking to sell their business, bring in a partner, or change their management structure needs to be aware that Chesters's approval is required. The FDD indicates that the franchise agreement does not specify particular transfer conditions that a franchisee must satisfy. Therefore, it is crucial for a prospective franchisee to fully understand Chesters's transfer policies and criteria for approval before investing in a franchise.