How many Chesters outlets ceased operations for reasons other than termination, non-renewal, or reacquisition by the franchisor in Texas during 2023?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
rs 2022 to 2024
| 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 |
|---|---|---|---|---|---|---|---|---|
| Alabama | 2022 | 19 | 2 | 0 | 0 | 0 | 2 | 19 |
| 2023 | 19 | 5 | 1 | 0 | 0 | 0 | 23 | |
| 2024 | 23 | 9 | 1 | 0 | 0 | 1 | 30 | |
| Arizona | 202 |
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 2023, 4 Chesters outlets in Texas ceased operations for reasons other than termination, non-renewal, or reacquisition by the franchisor. This is out of 65 outlets at the start of the year, with 2 new outlets opening and 1 non-renewal, resulting in 62 outlets at the end of 2023.
This information is crucial for potential franchisees as it provides insight into the stability and performance of Chesters franchises in Texas. A high number of closures for 'other reasons' might indicate underlying issues with the business model, market conditions, or franchisor support. Prospective franchisees should investigate these 'other reasons' to understand the potential risks and challenges of operating a Chesters franchise in Texas.
It's important to note that these figures only reflect the specific period of 2023. To gain a comprehensive understanding, a prospective franchisee should analyze the trends over several years, as well as compare the closure rates in Texas to those in other states. This will help assess whether the situation in Texas is unique or part of a broader pattern within the Chesters franchise system. Further due diligence, including speaking with current and former franchisees, is highly recommended to gather more qualitative insights into the reasons behind these closures.