What is the purpose of including the state information for Chesters franchisees in this table?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| State | Agreements Signed But Restaurants Not Open | Projected New Franchised Restaurants in the Next Fiscal Year | Projected New Company- Owned Restaurants in the Next Fiscal Year |
|---|---|---|---|
| Alabama | 1 | 2 | 0 |
| Arkansas | 8 | 13 | 0 |
| Arizona | 0 | 1 | 0 |
| California | 4 | 14 | 0 |
| Connecticut | 1 | 2 | 0 |
| Colorado | 0 | 2 | 0 |
| Florida | 0 | 2 | 0 |
| Georgia | 5 | 12 | 0 |
| Illinois | 0 | 2 | 0 |
| Indiana | 1 | 4 | 0 |
| Iowa | 0 | 1 | 0 |
| Kansas | 0 | 1 | 0 |
| Kentucky | 1 | 5 | 0 |
| Louisiana | 0 | 7 | 0 |
| Maine | 2 | 1 | 0 |
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 state information is included in various tables to provide a geographic breakdown of franchise activity. One table shows the number of franchise agreements signed but restaurants not yet opened, along with projections for new franchised and company-owned restaurants in the next fiscal year, broken down by state. This gives potential franchisees insight into Chesters's planned expansion and where growth is anticipated. For example, a prospective franchisee can see how many new Chesters locations are planned for their state versus other states.
Another table provides a state-by-state breakdown of outlet activity over the past three years, including the number of outlets at the start of the year, outlets opened, terminations, non-renewals, outlets reacquired by the franchisor, outlets that ceased operations for other reasons, and the number of outlets at the end of the year. This historical data helps potential franchisees assess the stability and performance of Chesters franchises in different regions. A high number of closures or non-renewals in a particular state might warrant further investigation.
Chesters also lists current franchisees, including their addresses and phone numbers, as well as franchisees who have left the system, organized by state. This information allows prospective franchisees to contact existing and former franchisees in their state to learn more about their experiences with Chesters. The inclusion of state information in these tables offers transparency and enables potential franchisees to conduct thorough due diligence, assess market saturation, and understand the competitive landscape in their target areas.