What was the net change in the number of franchised Chesters outlets during 2023?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2022 | 1076 | 1081 | 5 |
| 2023 | 1081 | 1002 | -79 | |
| 2024 | 1002 | 994 | -8 | |
| Company-Owned | 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 | |
| 2024 | 0 | 0 | 0 | |
| Total Outlets | 2022 | 1076 | 1081 | 5 |
| 2023 | 1081 | 1002 | -79 | |
| 2024 | 1002 | 994 | -8 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 38–48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the net change in the number of franchised outlets during 2023 was a decrease of 79 locations. At the start of 2023, there were 1,081 franchised Chesters outlets, but by the end of the year, this number had dropped to 1,002. This represents a significant contraction in the franchise system during that year.
This information is crucial for potential franchisees as it provides insight into the stability and growth of the Chesters franchise system. A decrease in the number of franchised outlets could indicate various factors, such as franchisees leaving the system, closures due to poor performance, or a change in the franchisor's strategy. Understanding the reasons behind this net change is essential for making an informed investment decision.
Prospective franchisees should investigate the reasons for this decrease by asking Chesters for more details. Understanding the causes behind the closure of these locations will allow potential franchisees to evaluate the risks and opportunities associated with investing in a Chesters franchise. This due diligence will help them assess the long-term viability and potential profitability of owning a Chesters restaurant.