Can a Chesters franchisee sign a lease before the franchisor approves the site?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
We first must approve your site before signing the Agreement, even if you already have a site picked out for the Restaurant. When you approach us, we will give you our site-selection criteria for a Restaurant. Factors we consider in evaluating Restaurant sites include (1) a site's visibility from adjacent traffic arteries, (2) ease of entry from and exit to adjacent streets, (3) the size, density, and income levels of population in the surrounding area, (4) the rental market in the area, (5) types of nearby businesses, (6) projected cost of leasehold improvements, and (7) proximity to another franchised Restaurant or to a Licensed Restaurant. We must accept all sites before you have the right to sign any lease, sublease, or other document for the site. We will evaluate the information you give us about a site. Our review process might or might not involve a physical site inspection. We will not take an unreasonable amount of time to review your proposed site. However, we need not respond within any particular time. We will either accept or reject your proposed site. We will not unreasonably withhold our acceptance of a site but can reject one we consider inappropriate. Although we have the right to accept or reject a Restaurant's location, we will not select or designate a Restaurant site for you. Therefore, you must actively conduct the site-selection process. You have sole risk for your location's business and financial suitability. As noted above, we will not sign the Agreement if you have not yet located the Restaurant's site.
We anticipate that it takes approximately 2 to 4 months after the Agreement is signed and you pay the training fee before the Restaurant is ready to open. Factors affecting this timeframe include construction and remodeling schedules; local ordinance and/or building code compliance; schedules for installing equipment and signs; completing brand standard training programs; delivering and stocking inventory; and other events beyond your control. You must open the Restaurant for business within 180 days after signing the Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–29)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, a prospective franchisee must receive site approval from Chesters before signing any lease, sublease, or other document for the site. Chesters will provide site-selection criteria for a Restaurant, considering factors such as visibility, ease of access, population density and income levels, the rental market, nearby businesses, leasehold improvement costs, and proximity to other Chesters locations.
Chesters will evaluate the information provided by the franchisee regarding the site, which may or may not include a physical site inspection. While Chesters will not take an unreasonable amount of time to review the proposed site, there is no specific timeframe for their response. Chesters has the right to either accept or reject the proposed site, and while they will not unreasonably withhold acceptance, they can reject a site deemed inappropriate.
It is important to note that Chesters will not select or designate a Restaurant site for the franchisee; the franchisee is responsible for actively conducting the site-selection process and bears the sole risk for the location's business and financial suitability. Furthermore, Chesters will not sign the Franchise Agreement until the Restaurant site has been located. After the Agreement is signed and the training fee is paid, it is anticipated to take approximately 2 to 4 months before the Restaurant is ready to open, with the franchisee required to open for business within 180 days after signing the Agreement.