Does Chesters focus on offering Chester's Restaurant franchises or Chester Fried Licensed Restaurants?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
Before the First Chester's began offering CHESTER'S Restaurant franchises on approximately March 1, 2004, our former affiliate, Giles Enterprises, Inc. ("Giles"), whose address was 2750 Gunter Park Drive West, Montgomery, Alabama 36121, licensed existing retail operators to operate quick-service chicken and sides restaurants similar to the Restaurant opportunity offered in our disclosure document in a program called the "CHESTER FRIED® Total Program" (the "Chester Fried Licensed Restaurants"). Giles began licensing operators to operate Chester Fried Licensed Restaurants in 1974; as of December 31, 2024, there were approximately 16 Operators of Chester Fried Licensed Restaurants remaining in the United States. Operators of Chester Fried Licensed Restaurants generally did not receive all the benefits of a CHESTER'S Restaurant franchise and also were not subject to all the same restrictions and obligations. For example, Chester Fried Licensed Restaurants did not pay a franchise or any other initial fee. Also, most Chester Fried Licensed Restaurants continue to operate under the "CHESTER FRIED®" name. We are now the licensor of those Chester Fried Licensed Restaurants. Operators of Chester Fried Licensed Restaurants have the right to convert their units to franchised Restaurants if they satisfy our standards for a CHESTER'S Restaurant franchisee. If they want to convert, they will sign our Agreement. There is no conversion agreement or similar document they must sign. In addition, in certain parts of the United States, we may continue allowing certain experienced foodservice operators, and chain accounts who already operate one or more Chester Fried Licensed
Restaurants, to develop and operate additional Chester Fried Licensed Restaurants. We generally anticipate doing so only when the experienced food-service operator or chain account prefers (for its own business reasons) not to acquire a CHESTER'S Restaurant franchise. With this exception, we focus on offering and granting CHESTER'S Restaurant franchises and CHESTER'S Licensed Restaurants (as described below). Chester Fried Licensed Restaurants will continue to operate for many years and might compete with you if they are located in the same geographic area where your Restaurant is located. We do not currently operate and have not operated any Chester Fried Licensed Restaurants or CHESTER'S Restaurants.
In addition to the Restaurant franchises offered in this disclosure document, in 2022 we began offering certain qualified individuals or entities the right to sign a license agreement to use the Marks, including the Primary Mark, solely to prepare and sell Chester's proprietary menu items within or from their existing foodservice or restaurant operations, including supermarkets ("CHESTER'S Licensed Restaurants", and together with the Chester Fried Licensed Restaurants, the "Licensed Restaurants"). As of December 31, 2024, there were 253 CHESTER'S Licensed Restaurants operating in the United States.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the company primarily focuses on offering CHESTER'S Restaurant franchises and CHESTER'S Licensed Restaurants. However, Chesters may continue allowing certain experienced foodservice operators and chain accounts who already operate one or more Chester Fried Licensed Restaurants to develop and operate additional Chester Fried Licensed Restaurants in certain parts of the United States. This exception is generally made when these operators prefer not to acquire a CHESTER'S Restaurant franchise for their own business reasons.
CHESTER'S Restaurant franchises are described as more fully developed and branded units located within existing businesses, implementing marketing initiatives to promote their products. In contrast, CHESTER'S Licensed Restaurants involve only prepared products sold as "impulse-buy" items. As of December 31, 2024, there were approximately 16 Operators of Chester Fried Licensed Restaurants remaining in the United States and 253 CHESTER'S Licensed Restaurants operating in the United States.
Prospective franchisees should be aware that Chester Fried Licensed Restaurants might compete with CHESTER'S Restaurants if located in the same geographic area. However, Chesters anticipates that any such competition would not be substantial because CHESTER'S Restaurant franchises are more fully-developed, branded units that implement various marketing initiatives to promote their products, while CHESTER'S Licensed Restaurants involve only prepared products sold as "impulse-buy" items to customers shopping at the location.