What was the total revenue of Chesters in 2024?

According to Chesters's 2025 Franchise Disclosure Document, the company's total revenue in 2024 was $40,358,110. A significant portion of this revenue, specifically $37,118,501, came from direct franchisee purchases of equipment and proprietary food products, as well as sales to unaffiliated suppliers and grocery wholesalers for resale to franchisees. This $37,118,501 represents 91.97% of Chesters's total revenue for the year. These figures are derived from Chesters's audited financial statements.

For a prospective franchisee, this information provides insight into the financial health and revenue streams of Chesters. The reliance on franchisee purchases and related sales indicates the importance of the franchise network to Chesters's overall financial performance. It also highlights the potential impact that supply chain management and relationships with suppliers and distributors have on the franchisor's revenue.

It's important to note that Chesters also receives license fees from certain suppliers, ranging from 0.5% to 30% of their gross sales, on franchisee purchases of items like shortening, blended proprietary items, paper goods, and promotional items. While the specific revenue generated from these license fees isn't broken out, it contributes to the overall revenue picture. Franchisees should be aware of these revenue streams as they reflect the financial relationships between Chesters, its suppliers, and its franchisees.

Understanding the sources of Chesters's revenue can help a potential franchisee assess the stability and sustainability of the franchise system. A high percentage of revenue derived from franchisee purchases suggests that the success of Chesters is closely tied to the success and activity of its franchisees. Therefore, it is crucial for prospective franchisees to evaluate the support and resources Chesters provides to ensure franchisee profitability and operational efficiency.