What is the purpose of including the zip code information for Chesters franchisees in this table?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| 48 | 182 | 0 | Exhibit E lists all CHESTER'S Restaurant franchisees and the addresses and telephone numbers of their Restaurants (or prospective Restaurants noted with an asterisk) as of December 31, 2024. Exhibit E also lists the names, city and state, and current business telephone numbers (or, if unknown, the last known home telephone numbers) of the CHESTER'S Restaurant franchisees who had outlets terminated, cancelled, or not renewed or otherwise voluntarily or involuntarily ceased to do business under our Agreement from January 1, 2024 to December 31, 2024. There are no franchisees who have not communicated with us within 10 weeks of this disclosure document's issuance date. If you buy this franchise, your contact information may be disclosed to other buyers when you leave the franchise system.
During the last 3 fiscal years, no current or former franchisees have signed confidentiality clauses that restrict them from discussing with you their experiences as a franchisee in our franchise system.
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 tables that include zip code information for franchisees are part of Exhibit E, which lists current Chesters Restaurant franchisees and their addresses as of December 31, 2024. The zip codes, along with other location details such as street address, city, and state, serve to precisely identify the physical location of each franchised restaurant. This allows prospective franchisees to understand the geographic distribution of existing Chesters locations.
For a potential franchisee, this information is valuable for several reasons. Firstly, it allows them to assess whether there are existing Chesters restaurants in their target market, which could indicate market saturation or, conversely, brand recognition. Secondly, it enables them to conduct local market research by visiting nearby locations and observing their operations. Finally, it facilitates direct communication with current franchisees in similar geographic areas, providing an opportunity to gain firsthand insights into the challenges and opportunities of operating a Chesters franchise.
In addition to current franchisees, Exhibit E also lists former franchisees who have left the Chesters system between January 1, 2024, and December 31, 2024, including their last known contact information. This provides further opportunities for prospective franchisees to gather information and perspectives on the Chesters franchise system. The FDD also states that there were no confidentiality clauses signed by current or former franchisees restricting them from discussing their experiences.