Which state had the highest number of Chesters outlets cease operations for other reasons in 2022?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
rs 2022 to 2024
| State | Year | Outlets at Start of Year | Outlets Opened | Termination | Non- Renewal | Reacquired by Franchisor | Ceased Operations - Other Reasons | Outlets at End of the Year |
|---|---|---|---|---|---|---|---|---|
| Alabama | 2022 | 19 | 2 | 0 | 0 | 0 | 2 | 19 |
| 2023 | 19 | 5 | 1 | 0 | 0 | 0 | 23 | |
| 2024 | 23 | 9 | 1 | 0 | 0 | 1 | 30 | |
| Arizona | 2022 | 10 | 1 | 0 | 0 | 0 | 1 | 10 |
| 2023 | 10 | 0 | 0 | 0 | 0 | 1 | 9 | |
| 2024 | 9 | 1 | 0 | 0 | 0 | 1 | 9 | |
| Arkansas | 2022 | 119 | 16 | 0 | 1 | 0 | 3 | 131 |
| 2023 | 131 | 11 | 1 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 38–48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, Mississippi had the highest number of outlets that ceased operations for other reasons in 2022. The state saw 10 outlets close for reasons other than termination, non-renewal, or reacquisition by the franchisor.
Several other states also experienced closures for 'other reasons' during 2022. Kentucky had 6 closures, while Maine and Minnesota each had 5. Oklahoma and Pennsylvania each saw 5 Chesters locations cease operations for other reasons.
It is important for a prospective franchisee to understand the reasons behind these closures. While 'other reasons' is not defined in the FDD, it could include factors like poor performance, landlord issues, or local economic conditions. Investigating these reasons in detail can provide valuable insight into the challenges and opportunities within specific markets. Understanding why units closed in certain states can help a franchisee evaluate the risks associated with opening a Chesters franchise in a particular area.