Who is the current licensor of the Chester Fried Licensed Restaurants?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
Before the First Chester's began offering CHESTER'S Restaurant franchises on approximately March 1, 2004, our former affiliate, Giles Enterprises, Inc. ("Giles"), whose address was 2750 Gunter Park Drive West, Montgomery, Alabama 36121, licensed existing retail operators to operate quick-service chicken and sides restaurants similar to the Restaurant opportunity offered in our disclosure document in a program called the "CHESTER FRIED® Total Program" (the "Chester Fried Licensed Restaurants"). Giles began licensing operators to operate Chester Fried Licensed Restaurants in 1974; as of December 31, 2024, there were approximately 16 Operators of Chester Fried Licensed Restaurants remaining in the United States. Operators of Chester Fried Licensed Restaurants generally did not receive all the benefits of a CHESTER'S Restaurant franchise and also were not subject to all the same restrictions and obligations. For example, Chester Fried Licensed Restaurants did not pay a franchise or any other initial fee. Also, most Chester Fried Licensed Restaurants continue to operate under the "CHESTER FRIED®" name. We are now the licensor of those Chester Fried Licensed Restaurants. Operators of Chester Fried Licensed Restaurants have the right to convert their units to franchised Restaurants if they satisfy our standards for a CHESTER'S Restaurant franchisee. If they want to convert, they will sign our Agreement. There is no conversion agreement or similar document they must sign. In addition, in certain parts of the United States, we may continue allowing certain experienced foodservice operators, and chain accounts who already operate one or more Chester Fried Licensed
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, Chester's International, LLC is now the licensor of the Chester Fried Licensed Restaurants. Previously, Giles Enterprises, Inc. licensed existing retail operators to run quick-service chicken and sides restaurants under the "CHESTER FRIED® Total Program" since 1974. As of December 31, 2024, there were approximately 16 of these Chester Fried Licensed Restaurants still operating in the United States.
For a potential Chesters franchisee, this means that the franchisor, Chester's International, LLC, manages the licensing of these Chester Fried locations. These licensed restaurants, while similar, do not offer the same benefits or have the same obligations as a full Chesters Restaurant franchise. For instance, Chester Fried Licensed Restaurants do not pay a franchise fee.
The FDD notes that Chester Fried Licensed Restaurants may continue to operate for many years and could compete with a new Chesters Restaurant if located in the same area. However, operators of Chester Fried Licensed Restaurants have the option to convert their units into franchised Restaurants if they meet Chesters' standards and sign the franchise agreement. In some regions, Chesters may allow experienced foodservice operators or chain accounts to open additional Chester Fried Licensed Restaurants, especially if they prefer not to acquire a full Chesters Restaurant franchise.