Under what circumstances might Chesters allow experienced foodservice operators to develop additional Chester Fried Licensed Restaurants?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, in certain parts of the United States, we may continue allowing certain experienced foodservice operators, and chain accounts who already operate one or more Chester Fried Licensed
Restaurants, to develop and operate additional Chester Fried Licensed Restaurants. We generally anticipate doing so only when the experienced food-service operator or chain account prefers (for its own business reasons) not to acquire a CHESTER'S Restaurant franchise. With this exception, we focus on offering and granting CHESTER'S Restaurant franchises and CHESTER'S Licensed Restaurants (as described below). Chester Fried Licensed Restaurants will continue to operate for many years and might compete with you if they are located in the same geographic area where your Restaurant is located. We do not currently operate and have not operated any Chester Fried Licensed Restaurants or CHESTER'S Restaurants.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–12)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, Chesters may allow experienced foodservice operators and chain accounts who already operate one or more Chester Fried Licensed Restaurants to develop and operate additional Chester Fried Licensed Restaurants in certain parts of the United States. This is generally anticipated only when the experienced food-service operator or chain account prefers not to acquire a Chesters Restaurant franchise for their own business reasons.
Chesters focuses on offering and granting Chesters Restaurant franchises and Chesters Licensed Restaurants, with the exception noted above for experienced operators who prefer the Chester Fried Licensed Restaurant model. These Chester Fried Licensed Restaurants may continue to operate for many years and could potentially compete with a new Chesters Restaurant franchise if located in the same geographic area.
It's important to note the distinction between Chester Fried Licensed Restaurants and Chesters Restaurant franchises. Chester Fried Licensed Restaurants originated before Chesters began offering franchises in 2004 and generally do not receive all the benefits or face the same restrictions as franchisees. For example, they did not pay a franchise fee. Operators of Chester Fried Licensed Restaurants do have the option to convert their units into franchised Restaurants if they meet Chesters' standards and sign the franchise agreement.