Does a Chesters franchisee have rights of first refusal to acquire additional franchises?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
You have no options, rights of first refusal, or similar rights to acquire additional franchises. Continuation of your franchise does not depend on your achieving a certain sales volume, market penetration, or other contingency.
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, a franchisee does not have rights of first refusal to acquire additional franchises. The FDD clearly states that franchisees have no options, rights of first refusal, or similar rights to acquire additional franchises. This means that Chesters is not obligated to offer existing franchisees the opportunity to open new locations before offering them to new franchisees or opening company-owned stores.
This policy is important for potential franchisees to understand, as it means that their ability to expand within the Chesters system is not guaranteed. While a franchisee may perform well and desire to open additional locations, Chesters retains the sole discretion to decide who receives new franchise opportunities. This differs from some franchise systems where existing franchisees are given priority for new territories or locations.
Furthermore, the FDD indicates that the continuation of a Chesters franchise does not depend on achieving a certain sales volume, market penetration, or other contingency. This provides some security for franchisees, as their franchise agreement will not be jeopardized solely based on performance metrics. However, it also reinforces the fact that expansion opportunities are not tied to success within the existing franchise, but rather at the discretion of Chesters.