Under what condition can Chesters terminate the franchise agreement if the restaurant is not opened?

According to Chesters's 2025 Franchise Disclosure Document, Chesters has the right to terminate the franchise agreement if a franchisee fails to open their restaurant within a specific timeframe.

Specifically, Chesters can terminate the agreement if the franchisee does not open the restaurant within 180 days after the effective date of the franchise agreement. This condition applies to food court/strip mall franchises or other non-traditional franchises, such as those located in sports arenas or stadiums, where the restaurant operates from a leased site.

This provision is fairly standard in the franchise industry, as franchisors need to ensure that franchisees promptly establish their businesses to maintain brand consistency and generate revenue. For a prospective Chesters franchisee, this means that securing a location and preparing it for opening within the 180-day timeframe is crucial to avoid termination of the agreement. Franchisees should carefully consider the time needed for site selection, lease negotiation, construction, and obtaining necessary permits to ensure they can meet this deadline.