Are there any geographic limits specified for the Chesters restaurant development?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
to time. We identify the Chester's System by certain trademarks and logos, including CHESTER'S® ("Marks"). You desire to operate a restaurant under the Chester's System and to obtain a license from us for that purpose.
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- License Grant. We hereby grant you the right and license, and you undertake the obligation, to operate a CHESTER'S restaurant at the Location (the "Restaurant") for the term specified below in association with the Marks and in compliance with the Chester's System. This license is non-exclusive. You have no territorial protection. We and our affiliates reserve the right at all times during this Agreement's term to engage in any and all activities that we deem appropriate, at any time or place, without any restrictions.
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- Term. This Agreement's term is five (5) years from the Effective Date. You agree to operate the Restaurant for the full five (5) year term. We and you may renew or extend the license at the end of the five (5) year term only upon mutual written consent, which neither party is required to give.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters' 2025 Franchise Disclosure Document, the license granted to a franchisee to operate a CHESTER'S restaurant is for a specific location and is non-exclusive. Chesters does not provide any territorial protection to its franchisees. Chesters and its affiliates reserve the right to engage in any activities they deem appropriate, at any time or place, without any restrictions.
However, during the term of the agreement, a franchisee is restricted from having any direct or indirect interest in, or performing services for, a Competitive Business at the Location or within a five (5)-mile radius from the Location. A Competitive Business is defined as any business preparing and selling breaded chicken products or other required side items, a Restaurant-in-Store unit deriving more than 20% of its revenue from chicken sales, or a business granting franchises or licenses to operate similar businesses, excluding other CHESTER'S Restaurants.
If a franchisee violates the restriction on operating a Competitive Business, they must pay Chesters liquidated damages of $10,000 as compensation for Brand Damages, which include lost market penetration, goodwill, customer confusion, and lost opportunity costs. This payment is in addition to any other amounts due under the agreement and does not excuse the franchisee from complying with other contractual obligations.