Does Chesters offer any territorial protection to franchisees?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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- License Grant.
We hereby grant you the right and license, and you undertake the obligation, to operate a CHESTER'S restaurant at the Location (the "Restaurant") for the term specified below in association with the Marks and in compliance with the Chester's System.
This license is non-exclusive.
You have no territorial protection.
We and our affiliates reserve the right at all times during this Agreement's term to engage in any and all activities that we deem appropriate, at any time or place, without any restrictions.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, franchisees are not granted exclusive territories. The franchise agreement explicitly states that the license granted to operate a CHESTER'S restaurant is non-exclusive.
This means that Chesters retains the right to operate or license other outlets, including those owned by the company, other franchisees, or through alternative channels of distribution, without restriction. These other outlets can be direct competitors to a franchisee's location.
For a prospective Chesters franchisee, this lack of territorial protection introduces a significant risk of competition from other Chester's locations or channels. It is important to carefully evaluate the potential market and competitive landscape before investing in a Chesters franchise, as the franchisor makes no guarantee of market exclusivity.