What were Chesters' franchise fees for the years ended December 31, 2023 and 2022?

According to Chesters's 2025 Franchise Disclosure Document, the financial statements include information about unearned franchise fees. These fees are initial franchise fees from individual franchise location sales to third parties and are recognized as revenue when the franchise opens. The FDD does not specifically list the total franchise fees Chesters collected for the years ended December 31, 2023, and 2022. Instead, it details how these fees are treated for accounting purposes.

For a prospective franchisee, this means that the initial franchise fee paid to Chesters is recorded as unearned revenue until the store opens. Once the store is operational, Chesters recognizes this fee as earned revenue. This accounting practice is standard in the franchise industry, as it aligns revenue recognition with the delivery of services and the franchisee's ability to operate the business.

To determine the total franchise fees Chesters collected, a prospective franchisee should review the complete audited financial statements or ask Chesters directly for this information. Understanding the total franchise revenue can provide insights into the company's growth and the number of new franchises being established.