As of December 31, 2024, how many franchised Chesters restaurants were operating systemwide?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2022 | 1076 | 1081 | 5 |
| 2023 | 1081 | 1002 | -79 | |
| 2024 | 1002 | 994 | -8 | |
| Company-Owned | 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 | |
| 2024 | 0 | 0 | 0 | |
| Total Outlets | 2022 | 1076 | 1081 | 5 |
| 2023 | 1081 | 1002 | -79 | |
| 2024 | 1002 | 994 | -8 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 38–48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, there were 994 franchised outlets operating systemwide as of December 31, 2024. This number reflects the total number of Chesters restaurants operating under a franchise agreement at the end of the specified year. This number does not include licensed restaurants operated under the "CHESTER FRIED Total Program".
When evaluating a franchise opportunity, it is essential for potential franchisees to understand the historical trends in outlet numbers. The number of Chesters franchised outlets decreased by 8 between 2023 and 2024, going from 1,002 to 994. This decrease could be due to several factors, including terminations, non-renewals, or other reasons for ceasing operations. Reviewing these changes over time can provide insights into the stability and growth potential of the franchise system.
Understanding the reasons behind outlet changes is crucial. For example, a high number of terminations could indicate issues with franchisee profitability or support, while a significant number of non-renewals might suggest dissatisfaction with the franchise terms. Conversely, a steady increase in outlet numbers suggests a healthy and expanding franchise system. A prospective franchisee should ask Chesters about the reasons for outlet closures and openings to gain a better understanding of the system's dynamics and overall health.