What is the purpose of Exhibit E in the Chester's International, LLC disclosure document?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
I received a disclosure document from Chester's International, LLC dated as of April 18, 2025, that included the following Exhibits:
- A. List of State Agencies/Agents for Service of Process
- B. CHESTER'S Restaurant Agreement
- C. Tables of Contents of Manuals
- D. Financial Statements
- E. List of CHESTER'S Restaurant Franchisees/List of Franchisees Leaving System During Past Year
- F. State Addenda and Agreement Riders
- G. Ascentium Capital Financing Program Documents
- H. Receipts of Disclosure Document
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to the 2025 Chester's Franchise Disclosure Document, Exhibit E contains two lists related to franchisees. The first is a list of current Chester's restaurant franchisees. The second is a list of franchisees who have left the Chester's system during the past year.
For a potential franchisee, this exhibit provides valuable information for due diligence. By reviewing the list of current franchisees, a prospective franchisee can identify and contact existing operators to learn about their experiences with Chester's. This direct feedback can offer insights into the day-to-day realities of running a Chester's franchise, the level of support provided by the franchisor, and the overall profitability of the business.
The list of franchisees who have left the system can also be informative. While the FDD will not detail the reasons why these franchisees left, it may prompt a potential franchisee to ask Chester's about turnover rates and the common reasons for franchise terminations or non-renewals. This information can help assess the stability and long-term viability of a Chester's franchise.