Does Chesters require approval of a restaurant site even if the franchisee has already selected it?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
We first must approve your site before signing the Agreement, even if you already have a site picked out for the Restaurant. When you approach us, we will give you our site-selection criteria for a Restaurant. Factors we consider in evaluating Restaurant sites include (1) a site's visibility from adjacent traffic arteries, (2) ease of entry from and exit to adjacent streets, (3) the size, density, and income levels of population in the surrounding area, (4) the rental market in the area, (5) types of nearby businesses, (6) projected cost of leasehold improvements, and (7) proximity to another franchised Restaurant or to a Licensed Restaurant. We must accept all sites before you have the right to sign any lease, sublease, or other document for the site. We will evaluate the information you give us about a site. Our review process might or might not involve a physical site inspection. We will not take an unreasonable amount of time to review your proposed site. However, we need not respond within any particular time. We will either accept or reject your proposed site. We will not unreasonably withhold our acceptance of a site but can reject one we consider inappropriate. Although we have the right to accept or reject a Restaurant's location, we will not select or designate a Restaurant site for you. Therefore, you must actively conduct the site-selection process. You have sole risk for your location's business and financial suitability. As noted above, we will not sign the Agreement if you have not yet located the Restaurant's site.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–29)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, Chesters requires approval of the restaurant site, even if the franchisee has already picked it out. Before signing the Franchise Agreement, the franchisee must have the site approved by Chesters.
Chesters will provide site-selection criteria for the restaurant. These factors include the site's visibility from traffic arteries, ease of access from adjacent streets, population size, density, income levels in the surrounding area, the rental market, types of nearby businesses, projected cost of leasehold improvements, and proximity to other franchised or licensed Chesters restaurants.
The franchisee cannot sign any lease or sublease until Chesters accepts the site. Chesters will evaluate the information provided about the site, which may or may not include a physical site inspection. Chesters does not commit to a specific timeframe for the review but will not take an unreasonable amount of time. Chesters can either accept or reject the proposed site and can reject a site deemed inappropriate. However, Chesters will not select or designate a restaurant site for the franchisee, so the franchisee is responsible for the site-selection process and bears the risk for the location's business and financial suitability. Chesters will not sign the Franchise Agreement until the restaurant site is located.