How many Chesters outlets in Montana ceased operations for other reasons in 2022?
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 |
| 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 2022, three Chesters outlets in Montana ceased operations for reasons other than termination, non-renewal, or reacquisition by the franchisor. This means that these locations closed for a variety of potential reasons not directly controlled by the franchise agreement.
For a prospective franchisee, this indicates a potential level of market or operational risk within Montana. These 'other reasons' could include factors like landlord-tenant disputes, failure to meet local regulations, or unforeseen economic downturns affecting specific locations. It is important to note that while three locations closed, no locations opened in Montana during 2022. This resulted in a net decrease of three Chesters locations in Montana during that year, with the number of outlets dropping from 15 to 12.
Understanding the specific 'other reasons' for these closures would be a crucial part of due diligence for anyone considering opening a Chesters franchise in Montana. A prospective franchisee should inquire with Chesters about the causes of these closures to assess the potential risks and challenges of operating in that market. This information, combined with a thorough market analysis, can help a franchisee make an informed decision.