How does the Chesters training fee (Item 5) compare to the potential costs associated with site selection and acquisition/lease (Item 9)?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay us a $3,500 training fee in a lump sum when you sign the Agreement. The training fee is not refundable under any circumstances. During the 2024 fiscal year, the training fees we received from franchisees ranged from $0 to $3,500.
All Restaurant-in-Store franchises will be located within your existing space, so you should have no significant additional rent/lease obligations unless you pay percentage rent. For a CHESTER'S Restaurant at a food court, a strip mall, or other non-traditional locations (such as a sports arena or stadium), we assume that you will lease the building or space for the Restaurant. However, if you currently own the building in which the Restaurant will be located, you should incur no rental costs. While we anticipate that the average in-line/food court Restaurant size will be 1,200 square feet, your Restaurant's size will depend on the location you choose. If you lease space from a third-party landlord, your monthly rent will depend on the location, the demand for the location among prospective lessees, general rental rates in that geographic area, whether the landlord adds tenant build-out allowances into the rent, and similar factors. You might have to pay base rent and percentage rent based on Restaurant gross sales. If utilities, taxes, and insurance are included in rent, then the rent also might increase. You also should expect to pay a security deposit equal to 1 or 2 months' rent.
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the training fee is $3,500. This fee is paid in a lump sum when signing the Franchise Agreement and is non-refundable under any circumstances. The FDD indicates that during the 2024 fiscal year, the training fees Chesters received from franchisees ranged from $0 to $3,500.
In comparison, the costs associated with site selection and acquisition/lease can vary significantly. For a Chesters Restaurant at a food court, a strip mall, or other non-traditional locations, Chesters assumes that the franchisee will lease the building or space for the Restaurant. The monthly rent will depend on factors such as the location, demand, general rental rates, and whether the landlord includes tenant build-out allowances in the rent. Franchisees might have to pay base rent and percentage rent based on Restaurant gross sales. They should also expect to pay a security deposit, potentially equal to 1 or 2 months' rent.
For Restaurant-in-Store franchises, which are located within an existing space, franchisees should have no significant additional rent/lease obligations unless they pay percentage rent. The size of an in-line/food court Restaurant will depend on the location chosen, with Chesters anticipating an average size of 1,200 square feet. However, if the franchisee already owns the building in which the Restaurant will be located, they should incur no rental costs. The costs associated with site selection and acquisition/lease can therefore range from minimal to substantial, depending on the type of location and the specific terms of the lease agreement.