factual

What was the name of the former affiliate of Chesters that licensed existing retail operators?

Chesters Franchise · 2025 FDD

Answer from 2025 FDD Document

Before the First Chester's began offering CHESTER'S Restaurant franchises on approximately March 1, 2004, our former affiliate, Giles Enterprises, Inc. ("Giles"), whose address was 2750 Gunter Park Drive West, Montgomery, Alabama 36121, licensed existing retail operators to operate quick-service chicken and sides restaurants similar to the Restaurant opportunity offered in our disclosure document in a program called the "CHESTER FRIED® Total Program" (the "Chester Fried Licensed Restaurants"). Giles began licensing operators to operate Chester Fried Licensed Restaurants in 1974; as of December 31, 2024, there were approximately 16 Operators of Chester Fried Licensed Restaurants remaining in the United States. Operators of Chester Fried Licensed Restaurants generally did not receive all the benefits of a CHESTER'S Restaurant franchise and also were not subject to all the same restrictions and obligations. For example, Chester Fried Licensed Restaurants did not pay a franchise or any other initial fee. Also, most Chester Fried Licensed Restaurants continue to operate under the "CHESTER FRIED®" name. We are now the licensor of those Chester Fried Licensed Restaurants. Operators of Chester Fried Licensed Restaurants have the right to convert their units to franchised Restaurants if they satisfy our standards for a CHESTER'S Restaurant franchisee. If they want to convert, they will sign our Agreement. There is no conversion agreement or similar document they must sign. In addition, in certain parts of the United States, we may continue allowing certain experienced foodservice operators, and chain accounts who already operate one or more Chester Fried Licensed

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)

What This Means (2025 FDD)

According to Chesters's 2025 Franchise Disclosure Document, before March 1, 2004, Giles Enterprises, Inc. was an affiliate that licensed existing retail operators. Giles licensed these operators to run quick-service chicken and side restaurants, similar to Chesters, under a program called the "CHESTER FRIED® Total Program".

Giles began this licensing program in 1974. As of December 31, 2024, approximately 16 Chester Fried Licensed Restaurants were still operating in the United States. These licensed restaurants differed from franchised Chesters restaurants, as they did not receive the same benefits, nor were they subject to the same obligations. For instance, Chester Fried Licensed Restaurants did not pay an initial franchise fee.

Most of these Chester Fried Licensed Restaurants continue to operate under the "CHESTER FRIED®" name. Chesters is now the licensor for these restaurants, and the operators have the option to convert their units into franchised Chesters Restaurants if they meet the franchisor's standards and sign the franchise agreement. In certain areas of the United States, Chesters may continue to allow experienced foodservice operators and chain accounts to develop and operate additional Chester Fried Licensed Restaurants, particularly if they prefer not to acquire a Chesters Restaurant franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.