If Chesters principal owners do not participate in the Restaurant's day-to-day operations, what is required?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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, principal owners are not required to participate in the day-to-day operations of the restaurant. However, if the principal owners choose not to participate in the daily operations, Chesters requires the franchisee to employ a manager who will.
The employed manager must devote the necessary time and effort to supervise and conduct the restaurant's operation. This ensures that the restaurant is properly managed even if the owner is not directly involved.
Furthermore, the manager and other restaurant employees must attend and complete Chesters' initial brand standard training program to the franchisor's satisfaction. Upon completion, they will be considered certified in the brand standard training program. The manager and other on-site employees are not required to have an equity interest in the restaurant but must agree in writing to preserve confidential information to which they have access. Chesters does not require franchisee owners to sign a guarantee of performance.