Does Chesters have a right of first refusal to acquire a Chesters franchisee's business?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Provision | Section in franchise or other agreement | Summary | |
|---|---|---|---|
| d. | Termination by franchisee | Not Applicable | You have no contractual right to terminate the Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 35–38)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, Chesters does not have a right of first refusal to acquire a franchisee's business. This information is detailed in Item 17, which outlines the terms for renewal, termination, transfer, and dispute resolution within the franchise agreement. Specifically, the table within this item addresses various provisions related to the franchise relationship.
For a prospective franchisee, this means that if you decide to sell your Chesters franchise, Chesters does not have the contractual right to step in and purchase the business before you offer it to other potential buyers. This can provide more flexibility for the franchisee in negotiating the sale of their business to a third party.
It is important to note, however, that while Chesters does not have a right of first refusal, the FDD also states that franchisees have no right to transfer the franchise without Chesters's prior written consent, which Chesters has the right to grant or withhold as it deems best. This means that even though Chesters cannot force a sale to themselves, they still maintain control over who can become a new franchisee.