Are Chesters franchisee owners required to sign a guarantee of performance?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 15: OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS]
ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
Your principal owners need not participate in the Restaurant's day-to-day operations, and we do not necessarily recommend that you do so. However, if they do not do so, you must employ a manager to participate in the Restaurant's day-to-day operations. Your manager must devote the necessary time and efforts to supervise and conduct the Restaurant's operation. Your manager and other Restaurant employees must attend and complete our initial brand standard training program to our satisfaction. All who do so will be considered certified in our brand standard training program. Your manager and other on-site employees need not have an equity interest in the Restaurant or you but must agree in writing to preserve confidential information to which they have access. We do not require franchisee owners to sign a guarantee of performance.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 34–35)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, franchisee owners are not required to sign a guarantee of performance. However, if the principal owners of the Chesters restaurant do not participate in the day-to-day operations, Chesters requires the franchisee to employ a manager to do so.
Chesters also stipulates that the manager must devote the necessary time and effort to supervise and conduct the restaurant's operation. Furthermore, the manager and other restaurant employees must attend and complete Chesters' initial brand standard training program to Chesters' satisfaction. Those who complete the training program will be considered certified in Chesters' brand standard training program.
While the manager and other on-site employees do not need to have an equity interest in the restaurant or the franchisee's business, they must agree in writing to preserve confidential information to which they have access. This ensures that sensitive business information remains protected, regardless of the employee's ownership stake.