As of December 31, 2023, how many Chesters franchises were in operation?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company executes store-level franchise agreements, which set out the terms of the arrangement with the franchisees for units operated by third parties. The Company's franchise agreements typically require the franchisee to pay an initial, non-refundable fee upon an individual store opening. Subject to Company approval, a franchisee may generally renew the franchise agreement upon its expiration. There were 1,002 franchises in operation at December 31, 2023 (1,081 at December 31, 2022). There were no franchisor-owned outlets in operation at December 31, 2023 and 2022.
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, there were 1,002 Chesters franchises in operation as of December 31, 2023. This number reflects units operated by third-party franchisees, as Chesters did not have any franchisor-owned outlets in operation during that time. This information is based on the company's store-level franchise agreements, which outline the terms and conditions for franchisees.
For a prospective franchisee, this indicates the size and reach of the Chesters franchise system at that time. It's a snapshot of the brand's established presence and market penetration. However, it's important to note that this number can change over time due to new openings, closures, and terminations of franchise agreements. The FDD also notes that there were 992 franchises in operation at December 31, 2024, indicating a decrease in the number of franchises year over year.
When evaluating this information, a potential franchisee should consider the trend in the number of operating franchises. Is the system growing, shrinking, or remaining stable? Further research into the reasons behind any changes in the number of franchises can provide valuable insights into the health and stability of the Chesters franchise system. It would be prudent to ask Chesters about the reasons for the decrease in franchises between 2023 and 2024.