Does Chesters guarantee a physical site inspection as part of the site approval process?
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.
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 physical site inspection is not guaranteed as part of the site approval process. Chesters must approve the franchisee's site before the Agreement is signed, even if the franchisee has already picked out a location. Chesters will provide site-selection criteria for a Restaurant, including factors such as visibility, ease of access, population density and income levels, rental market, nearby businesses, leasehold improvement costs, and proximity to other Chesters locations.
Chesters will evaluate the information provided by the franchisee, but the review process might or might not involve a physical site inspection. Chesters will either accept or reject the proposed site and will not unreasonably withhold acceptance of a site but can reject one they consider inappropriate. Chesters will not select or designate a Restaurant site for the franchisee, meaning the franchisee is responsible for the site-selection process and bears the risk for the location's business and financial suitability.
This means that while Chesters has the right to approve or reject a location, they do not guarantee a physical inspection of the site. It is up to the franchisee to find a suitable location that meets Chesters' criteria, and the franchisee should not assume that Chesters will conduct a physical inspection to verify the site's suitability. A prospective franchisee should clarify with Chesters what their typical site review process entails and under what circumstances a physical site inspection would be conducted.