What is the weighted average remaining lease term for Chesters as of December 31, 2024?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company leases its administrative and warehouse facilities under noncancelable operating lease agreements having terms in excess of one year expiring through 2034.
The following summarizes the weighted average remaining lease term and discount rate as of December 31, 2024 and 2023:
| 2024 | 2023 | |
|---|---|---|
| Weighted Average Remaining Lease Term | 9.09 years | 9.71 years |
| Weighted Average Discount Rate | 8.50% | 8.32% |
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the company leases its administrative and warehouse facilities under noncancelable operating lease agreements with terms exceeding one year, expiring through 2034. As of December 31, 2024, the weighted average remaining lease term is 9.09 years. This figure provides insight into the average duration of Chesters's lease obligations for its facilities.
For a prospective franchisee, understanding the remaining lease term is crucial because it reflects the stability and long-term commitment Chesters has to its current locations. A longer weighted average remaining lease term typically indicates that Chesters has secured stable locations for its administrative and warehouse operations, which can positively influence supply chain and support for franchisees.
However, it is important to note that this data pertains to Chesters's own leases for its administrative and warehouse facilities, not the leases of individual franchise locations. Franchisees will need to negotiate their own lease terms for their specific restaurant locations, which may vary significantly based on location, market conditions, and landlord negotiations. The FDD does not specify the lease terms for individual franchise locations.