What factors might influence the monthly rent for a Chesters Restaurant located in a leased space?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
All Restaurant-in-Store franchises will be located within your existing space, so you should have no significant additional rent/lease obligations unless you pay percentage rent. For a CHESTER'S Restaurant at a food court, a strip mall, or other non-traditional locations (such as a sports arena or stadium), we assume that you will lease the building or space for the Restaurant. However, if you currently own the building in which the Restaurant will be located, you should incur no rental costs. While we anticipate that the average in-line/food court Restaurant size will be 1,200 square feet, your Restaurant's size will depend on the location you choose. If you lease space from a third-party landlord, your monthly rent will depend on the location, the demand for the location among prospective lessees, general rental rates in that geographic area, whether the landlord adds tenant build-out allowances into the rent, and similar factors. You might have to pay base rent and percentage rent based on Restaurant gross sales. If utilities, taxes, and insurance are included in rent, then the rent also might increase. You also should expect to pay a security deposit equal to 1 or 2 months' rent.
Source: Item 7 — **ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, several factors can influence the monthly rent for a Chesters Restaurant operating in a leased space. These factors include the location of the restaurant, demand for that location among potential tenants, prevailing rental rates in the area, and whether the landlord incorporates tenant build-out allowances into the rent. The size of the restaurant, which Chesters anticipates will be around 1,200 square feet for in-line/food court locations, also plays a role in determining the rent.
Chesters franchisees might encounter different rent structures, such as paying a base rent or a percentage rent based on the restaurant's gross sales. Additionally, if utilities, taxes, and insurance are included in the rent, this can lead to an increase in the overall rental cost. Franchisees should also anticipate paying a security deposit, which is typically equivalent to one or two months' rent.
For franchisees considering a Restaurant-in-Store concept, particularly within an existing space, the FDD indicates that significant additional rent or lease obligations are unlikely unless percentage rent is applied. However, for locations in food courts, strip malls, or non-traditional venues like sports arenas, leasing the space is generally expected. It is important for prospective franchisees to carefully evaluate these factors and negotiate lease terms that align with their financial projections and business plan.