What is the deadline for a Chesters franchisee to open their restaurant after the agreement's effective date?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to terminate the Agreement if you fail to open the Restaurant within 180 days after the Agreement's effective date. You have the right to operate only from the accepted location and have no right to relocate within your existing business premises or elsewhere without our prior written permission. Whether we will permit relocation depends on the specific circumstances and what we consider to be in your Restaurant's and our system's best interests. We do not expect relocation to occur often because the Restaurant typically is located in your existing business premises.
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, a franchisee must open their restaurant within 180 days of the franchise agreement's effective date. This requirement applies to food court/strip mall franchises and other non-traditional franchises, such as those located in sports arenas or stadiums. Failure to open the restaurant within this timeframe gives Chesters the right to terminate the franchise agreement.
This 180-day deadline is a critical factor for prospective franchisees to consider. It means that after signing the agreement, the franchisee has approximately six months to secure a location, complete build-out, hire staff, and prepare for opening. This timeline can be challenging, especially considering potential delays in permitting, construction, or equipment delivery. Franchisees need to have a well-developed plan and sufficient capital to meet this deadline.
Chesters retains control over the restaurant's location, as franchisees can only operate from the accepted location and need prior written permission to relocate. While relocation is not expected to occur often, Chesters will consider it based on the specific circumstances and what they deem to be in the best interests of both the restaurant and the franchise system. This lack of flexibility regarding location underscores the importance of carefully evaluating the initial site selection.