Does information in the Chesters disclosure document cover all Chesters Restaurants regardless of location?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
Certain information appearing in this disclosure document, for example, outlet information in Item 20, covers all CHESTER'S Restaurants, regardless of their locations, because they operate under the same brand and sell the same products. We distinguish between these types of locations when necessary.
Before the First Chester's began offering CHESTER'S Restaurant franchises on approximately March 1, 2004, our former affiliate, Giles Enterprises, Inc. ("Giles"), whose address was 2750 Gunter Park Drive West, Montgomery, Alabama 36121, licensed existing retail operators to operate quick-service chicken and sides restaurants similar to the Restaurant opportunity offered in our disclosure document in a program called the "CHESTER FRIED® Total Program" (the "Chester Fried Licensed Restaurants"). Giles began licensing operators to operate Chester Fried Licensed Restaurants in 1974; as of December 31, 2024, there were approximately 16 Operators of Chester Fried Licensed Restaurants remaining in the United States. Operators of Chester Fried Licensed Restaurants generally did not receive all the benefits of a CHESTER'S Restaurant franchise and also were not subject to all the same restrictions and obligations. For example, Chester Fried Licensed Restaurants did not pay a franchise or any other initial fee. Also, most Chester Fried Licensed Restaurants continue to operate under the "CHESTER FRIED®" name. We are now the licensor of those Chester Fried Licensed Restaurants.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2025 FDD)
According to the 2025 Chesters Franchise Disclosure Document, certain information, such as outlet information in Item 20, covers all Chesters Restaurants regardless of their locations. This is because all Chesters Restaurants operate under the same brand and sell the same products. The disclosure document distinguishes between different types of locations when necessary, such as Restaurants-in-Store, food courts, strip malls, and other non-traditional locations like sports arenas or stadiums. This broad coverage ensures that franchisees receive a comprehensive overview of the Chesters system, irrespective of the specific location type they are considering.
However, the FDD also discusses CHESTER'S Licensed Restaurants, which are different from franchised Chesters Restaurants. As of December 31, 2024, there were 253 CHESTER'S Licensed Restaurants operating in the United States. These licensed restaurants involve a license agreement to use the Chesters trademarks to sell proprietary menu items within existing foodservice or restaurant operations, such as supermarkets. Unlike franchised restaurants, licensed restaurants do not require formal training, purchase of specific equipment, use of specific marketing materials, or build-out of the restaurant following a specific design.
Therefore, while the FDD provides information applicable to all Chesters Restaurants, it also differentiates between franchised and licensed locations. Prospective franchisees should pay close attention to these distinctions to understand which information applies specifically to the type of Chesters Restaurant they are interested in operating. Understanding the differences between franchised and licensed locations is crucial for making an informed investment decision.