What does the franchisee acknowledge regarding approvals from Chesters for the restaurant?

According to Chesters's 2025 Franchise Disclosure Document, the franchisee acknowledges that any approvals, consents, waivers, or conditions provided by Chesters, its agents, or brokers do not guarantee the success of the restaurant or the suitability of the approved items or matters. This means that even if Chesters approves certain aspects of the restaurant's development, such as plans, specifications, or equipment, it does not warrant that the restaurant will be profitable or successful.

This acknowledgement is significant for prospective franchisees because it clarifies that Chesters's approvals are primarily for ensuring compliance with the Chesters system and standards, rather than guaranteeing business success. Franchisees should not interpret Chesters's approvals as a promise of profitability or a guarantee that the chosen location, equipment, or other approved items are optimal for their specific restaurant. The franchisee bears the ultimate responsibility for the restaurant's success.

This type of disclaimer is common in franchise agreements. It protects Chesters from liability if a franchisee's restaurant fails despite following the franchisor's guidance and obtaining necessary approvals. Prospective franchisees should carefully consider this acknowledgement and conduct their own due diligence to assess the potential for success, rather than relying solely on Chesters's approvals. Franchisees should seek independent advice from business advisors, conduct market research, and carefully evaluate the location and other factors that could impact the restaurant's performance.