How many Chesters outlets ceased operations for other reasons in Tennessee during 2022?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| State | Year | Outlets at Start of Year | Outlets Opened | Termination | Non- Renewal | Reacquired by Franchisor | Ceased Operations - Other Reasons | Outlets at End of the Year |
|---|---|---|---|---|---|---|---|---|
| Tennessee | 2022 | 37 | 5 | 0 | 0 | 0 | 4 | 38 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 38–48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, in 2022, 4 Chesters outlets in Tennessee ceased operations for reasons other than termination, non-renewal, or reacquisition by the franchisor. At the start of 2022, there were 37 Chesters outlets in Tennessee. During 2022, 5 new outlets opened, and 4 closed for other reasons. At the end of 2022, there were 38 Chesters outlets in Tennessee.
'Ceased Operations - Other Reasons' typically includes closures due to factors like the franchisee's decision to close for personal reasons, failure to meet performance standards, or site-related issues (e.g., the lease expiring or the location becoming unsuitable). These closures are distinct from terminations (where the franchisor ends the agreement), non-renewals (where the franchisee chooses not to extend the agreement), and re acquisitions by Chesters.
Prospective franchisees should consider the reasons behind such closures when evaluating the stability and performance of Chesters franchises in Tennessee. Understanding the specific 'other reasons' for closures can provide valuable insights into potential challenges and opportunities within the Tennessee market. This information is crucial for making an informed investment decision and assessing the risks associated with operating a Chesters franchise in that state.