What is the relationship between Giles Enterprises, Inc. and the Chester Fried Licensed Restaurants now that Chesters is the licensor?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
Before the First Chester's began offering CHESTER'S Restaurant franchises on approximately March 1, 2004, our former affiliate, Giles Enterprises, Inc. ("Giles"), whose address was 2750 Gunter Park Drive West, Montgomery, Alabama 36121, licensed existing retail operators to operate quick-service chicken and sides restaurants similar to the Restaurant opportunity offered in our disclosure document in a program called the "CHESTER FRIED® Total Program" (the "Chester Fried Licensed Restaurants"). Giles began licensing operators to operate Chester Fried Licensed Restaurants in 1974; as of December 31, 2024, there were approximately 16 Operators of Chester Fried Licensed Restaurants remaining in the United States. Operators of Chester Fried Licensed Restaurants generally did not receive all the benefits of a CHESTER'S Restaurant franchise and also were not subject to all the same restrictions and obligations. For example, Chester Fried Licensed Restaurants did not pay a franchise or any other initial fee. Also, most Chester Fried Licensed Restaurants continue to operate under the "CHESTER FRIED®" name. We are now the licensor of those Chester Fried Licensed Restaurants. Operators of Chester Fried Licensed Restaurants have the right to convert their units to franchised Restaurants if they satisfy our standards for a CHESTER'S Restaurant franchisee. If they want to convert, they will sign our Agreement. There is no conversion agreement or similar document they must sign. In addition, in certain parts of the United States, we may continue allowing certain experienced foodservice operators, and chain accounts who already operate one or more Chester Fried Licensed
Restaurants, to develop and operate additional Chester Fried Licensed Restaurants. We generally anticipate doing so only when the experienced food-service operator or chain account prefers (for its own business reasons) not to acquire a CHESTER'S Restaurant franchise. With this exception, we focus on offering and granting CHESTER'S Restaurant franchises and CHESTER'S Licensed Restaurants (as described below). Chester Fried Licensed Restaurants will continue to operate for many years and might compete with you if they are located in the same geographic area where your Restaurant is located. We do not currently operate and have not operated any Chester Fried Licensed Restaurants or CHESTER'S Restaurants.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2025 FDD)
According to the 2025 Chesters Franchise Disclosure Document, Chesters International, LLC is now the licensor of the Chester Fried Licensed Restaurants, a role previously held by Giles Enterprises, Inc. Before Chesters began offering restaurant franchises in March 2004, Giles licensed existing retail operators to run quick-service chicken and side restaurants under the "CHESTER FRIED® Total Program," known as Chester Fried Licensed Restaurants. Giles started this licensing program in 1974, and by December 31, 2024, approximately 16 of these licensed restaurants were still operating in the United States.
Chester Fried Licensed Restaurants differ from Chesters Restaurant franchises in several ways. Licensees generally did not receive the same benefits as franchisees and were not subject to the same obligations. For instance, they did not pay a franchise or initial fee, and most continue to operate under the "CHESTER FRIED®" name. However, these operators have the option to convert their units into franchised Chesters Restaurants if they meet the franchisor's standards and sign the standard franchise agreement.
In some parts of the U.S., Chesters may continue to allow experienced foodservice operators and chain accounts already operating Chester Fried Licensed Restaurants to develop and operate additional licensed locations. This is generally considered when these operators prefer not to acquire a Chesters Restaurant franchise for their own business reasons. While Chesters focuses on granting Chesters Restaurant franchises and Chesters Licensed Restaurants, the Chester Fried Licensed Restaurants will continue to operate and may compete with new Chesters locations if they are in the same area.