Under what conditions can the Chesters franchise agreement be modified?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary | |
|---|---|---|---|
| q. | Non-competition covenants during the term of the franchise | 14 of Agreement | You and your owners are not allowed to have any direct or indirect controlling or noncontrolling interest as an owner in, or perform services as a director, officer, manager, employee, consultant, representative, or agent for, a Competitive Business at the Restaurant's location or within a 5-mile radius from the location. "Competitive Business" means (a) business preparing and selling to customers breaded chicken products or the other types of products (e.g., "sides" such as potato wedges) that we require the Restaurant to prepare and sell as of the Effective Date, including, but not limited to, such businesses as Charley Biggs, Champs Chicken, Krispy Krunchy Chicken, Cooper's Express, Broaster Chicken, and Chicken King, (b) business that includes a "Restaurant-in-Store" unit where the Restaurant-in-Store unit derives more than twenty-percent (20%) of its revenue from selling chicken, or (c) business granting franchises or licenses to others to operate the types of businesses described in clauses (a) or (b), other than a CHESTER'S Restaurant operated under an agreement with us. |
| r. | Non-competition covenants after the franchise is terminated or expires | Not Applicable | The Agreement does not address this issue. |
| s. | Modification of the agreement | 24 of Agreement | No modifications generally unless signed by parties to the Agreement, but we may change Manuals and standards, specifications, and operating procedures. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 35–38)
What This Means (2025 FDD)
According to the 2025 Chesters Franchise Disclosure Document, the franchise agreement can generally only be modified if the changes are signed by all parties involved in the agreement. However, Chesters retains the right to unilaterally change its manuals, standards, specifications, and operating procedures. This means that while the core agreement requires mutual consent for modifications, Chesters has the flexibility to update operational aspects of the franchise.
For a prospective Chesters franchisee, this is an important distinction. It suggests that while the fundamental terms of the franchise agreement are relatively stable, the day-to-day operations and standards can evolve at Chesters' discretion. Franchisees should pay close attention to the initial agreement to understand what is covered within it versus what falls under the manuals and operating procedures that Chesters can change.
This is a fairly common arrangement in franchising, where franchisors need the ability to adapt to changing market conditions and maintain brand consistency. However, franchisees should be aware of the scope of these potential changes and how they might impact their business. It would be prudent for a potential franchisee to discuss with existing franchisees how Chesters has historically managed changes to its manuals and operating procedures to better understand the potential impact on their investment.