What is the reported total value of operating lease right-of-use assets, net, for Chesters?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
e reported to the Federal Trade Commission, Washington, D.C. 20580 and the appropriate state agency identified on Exhibit A.
The franchisor is Chester's International, LLC, currently located at 1531 3rd Avenue North, Suite 110, Birmingham, Alabama 35203. Its telephone number is (800) 646-9403.
| CURRENT ASSETS | |||
|---|---|---|---|
| Cash | $ 2,515,674 | $ 2,392,340 | |
| Accounts receivable, net of allowance for | |||
| doubtful accounts | 5,299,346 | 3,735,366 | |
| Due from related parties | 1,117,539 | 684,044 | |
| Inventories, net | 1,247,308 | 1,130,712 | |
| Prepaid expenses | 49,815 | 101,200 | |
| Total current assets | 10,229,682 | 8,043,662 | |
| PROPERTY AND EQUIPMENT, NET | 878,650 | 148,788 |
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the total value of operating lease right-of-use assets, net, is detailed in the Item 23 receipts. The report lists the operating lease right-of-use assets, net, as $1,820,812 for one period and $1,304,672 for another period.
For a prospective Chesters franchisee, this indicates the value of assets the company holds related to leased properties and equipment. These assets reflect Chesters's financial obligations under operating leases, which are essentially contracts that allow the company to use an asset without owning it outright.
The fluctuation in these asset values from one period to another could be due to various factors, such as new leases, lease modifications, or amortization of existing lease assets. Understanding these figures can help a franchisee assess the financial health and leasing strategy of Chesters. It's important to note that these figures represent the value of the assets from the franchisor's perspective and not the franchisee's direct costs.