Is a Chesters manager required to have an equity interest in the Restaurant?
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.
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, nor does Chesters necessarily recommend it. However, if the owners choose not to be involved in daily operations, they must employ a manager to oversee the restaurant's activities. This manager is expected to dedicate the necessary time and effort to supervise and manage the restaurant's operation.
The FDD specifies that the manager, along with other restaurant employees, must attend and successfully complete Chesters's initial brand standard training program to become certified. However, neither the manager nor other on-site employees are required to have an equity interest in the Chesters restaurant. They must, however, agree in writing to protect any confidential information they access during their employment.
This policy provides flexibility for Chesters franchisees, allowing them to either manage the restaurant themselves or hire a manager without needing to offer equity. The emphasis is on ensuring that the restaurant is properly managed and that all staff are adequately trained and committed to maintaining the confidentiality of business information.