What factors does Chesters consider when evaluating potential restaurant sites?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
We first must approve your site before signing the Agreement, even if you already have a site picked out for the Restaurant. When you approach us, we will give you our site-selection criteria for a Restaurant. Factors we consider in evaluating Restaurant sites include (1) a site's visibility from adjacent traffic arteries, (2) ease of entry from and exit to adjacent streets, (3) the size, density, and income levels of population in the surrounding area, (4) the rental market in the area, (5) types of nearby businesses, (6) projected cost of leasehold improvements, and (7) proximity to another franchised Restaurant or to a Licensed Restaurant. We must accept all sites before you have the right to sign any lease, sublease, or other document for the site. We will evaluate the information you give us about a site. Our review process might or might not involve a physical site inspection. We will not take an unreasonable amount of time to review your proposed site. However, we need not respond within any particular time. We will either accept or reject your proposed site. We will not unreasonably withhold our acceptance of a site but can reject one we consider inappropriate. Although we have the right to accept or reject a Restaurant's location, we will not select or designate a Restaurant site for you. Therefore, you must actively conduct the site-selection process. You have sole risk for your location's business and financial suitability. As noted above, we will not sign the Agreement if you have not yet located the Restaurant's site.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–29)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, site selection is a crucial step that requires the franchisor's approval before a franchisee can sign any lease or agreement. Chesters provides site-selection criteria to assist franchisees in this process. Factors that Chesters considers include the site's visibility from traffic arteries and the ease of entry and exit to adjacent streets. These considerations ensure that the restaurant is easily accessible and visible to potential customers. The franchisor evaluates the information provided by the franchisee but may or may not conduct a physical site inspection.
Chesters also assesses the size, density, and income levels of the population in the surrounding area to determine the potential customer base and market viability. The rental market in the area and the projected cost of leasehold improvements are also considered, which helps in evaluating the financial feasibility of the location. The types of nearby businesses and the proximity to other franchised or licensed Chesters restaurants are also important factors. This helps to avoid cannibalization and ensures a balanced market presence.
While Chesters has the right to accept or reject a proposed site, they do not select or designate the site for the franchisee. The franchisee bears the sole risk for the location's business and financial suitability. Chesters aims to review proposed sites without unreasonable delay but does not commit to a specific response time. The franchisor will not unreasonably withhold acceptance of a site but can reject one deemed inappropriate. This process ensures that the chosen location aligns with Chesters's brand standards and market strategy, while the franchisee retains responsibility for the site's performance.