What constitutes a 'transfer' by a Chesters franchisee?

According to Chesters's 2025 Franchise Disclosure Document, a 'transfer' by a franchisee is comprehensively defined. It includes not only the transfer of the Franchise Agreement itself, but also the transfer of the franchisee's controlling ownership interest in the Chesters business. Furthermore, it extends to the transfer of the franchisee's actual management control over the Chesters restaurant.

This definition is important for prospective franchisees to understand, as any of these actions—transferring the agreement, ownership, or management—are considered a transfer under the terms of the franchise agreement. Item 17 outlines that franchisees do not have the right to transfer without Chesters's prior written consent, which Chesters has the right to grant or withhold at their discretion.

This means that if a franchisee wishes to sell their business, bring in a partner with a controlling interest, or step away from managing the restaurant, they must first obtain approval from Chesters. Chesters maintains significant control over who operates its franchises and can deny a transfer request for any reason. This is a fairly standard practice in franchising, as franchisors want to ensure that any new operator meets their standards and is capable of maintaining the brand's reputation and operational consistency.