Is the license granted to operate a Chester's restaurant exclusive?

According to Chesters's 2025 Franchise Disclosure Document, the license granted to a franchisee is non-exclusive, and the franchisee receives no territorial protection. Chesters and its affiliates retain the right to engage in any activities they deem appropriate, at any time or place, without restrictions.

This means that Chesters can open additional locations, including directly competing ones, near a franchisee's location. A franchisee does not have an exclusive territory where they are the only Chesters restaurant. This lack of exclusivity is a significant factor for prospective franchisees to consider, as it introduces the risk of direct competition from the franchisor or other franchisees.

Typically, franchise agreements vary in terms of exclusivity. Some franchises offer exclusive territories, providing franchisees with a protected market area. Others offer no exclusivity, similar to Chesters, which allows for greater flexibility for the franchisor but poses a higher risk for the franchisee. Prospective franchisees should carefully evaluate the potential impact of this non-exclusive license on their investment and business prospects.