Risk Score
Pending analysis
Investment Range
$27,500 - $301,500
Franchise Fee
$3,500
Total US Locations
994
Business Summary
Chester's International, LLC franchises quick-service chicken and sides restaurants under the CHESTER'S name. These restaurants operate primarily within convenience stores or other existing retail businesses, or at non-traditional locations such as strip malls, food courts, or sports arenas. They offer a specific menu including bone-in chicken, chicken filet sandwiches, chicken tenders, and various side orders.
Corporate History
Chester's International, LLC was formed in October 2002 as Chester's Supply Company, LLC, and later changed its name. The company began offering CHESTER'S Restaurant franchises in January 2008. Prior to this, a former affiliate, First Chester's, offered CHESTER'S Restaurant franchises from March 2004 through December 2007. Chester's International, LLC acquired the assets and obligations of First Chester's through a merger in December 2007. An even earlier affiliate, Giles Enterprises, Inc., licensed 'CHESTER FRIED® Total Program' restaurants starting in 1974, which Chester's International, LLC now licenses. In 2022, Chester's International, LLC also introduced 'CHESTER'S Licensed Restaurants' for existing foodservice operators. From 2013 to 2015, the company offered franchises for Area Director marketing businesses, though it no longer does so.
Financial Overview
Investment Range
$27,500 - $301,500
Franchise Fee (Low)
$3,500
Franchise Fee (High)
$3,500
Equipment Costs (Low)
$12,000
Equipment Costs (High)
$255,000
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Chester's International, LLC's financial statements for the year ended December 31, 2024, show a net loss of $(69,699), a significant decrease from a net income of $2,582,783 in 2023. This loss is largely attributed to a $2,514,311 loss on distributor agreement termination in 2024. The company's product sales also declined from $44,962,498 in 2023 to $27,865,394 in 2024. In 2023, Chester's International, LLC was not in compliance with certain financial loan covenants, though a waiver for this noncompliance was granted by the bank in 2024. The company has concentrations of sales and costs, with approximately 37% of 2024 sales (50% in 2023) to one third-party distributor, and one customer accounting for about 24% of accounts receivable in 2024 (64% in 2023).
Financing Details
Chester's International, LLC does not directly offer financing to its franchisees. However, Chester's International, LLC has partnered with a third-party lender, Ascentium Capital (a division of Regions Bank), to provide term loans for franchisees to finance the purchase of core equipment, signage, fixtures, and supplies for their Chester's Restaurant. Franchisees will make fixed monthly payments of principal and interest to Ascentium Capital. The interest rate is fixed when the loan is funded, currently around 4.99% per annum, though Ascentium Capital effectively earns 8.50% because Chester's International, LLC accepts a 5% to 10% lower payment from Ascentium Capital to reduce the franchisee's interest rate. This also means the purchase price for equipment, signage, fixtures, and supplies from Chester's International, LLC will be 5% to 10% higher if financed through Ascentium Capital compared to cash payment or other third-party financing. Loan terms are typically 60 months, but options from 3 to 6 years may be available. Franchisees can prepay the loan in full, but partial prepayments are not allowed. Eligibility for these loans depends on meeting Ascentium Capital's credit requirements. Loans are secured by the purchased property, and personal guarantees from owners may be required. Franchisees must pay Ascentium Capital a $195 documentation fee and potentially UCC search and/or site inspection fees. Default provisions include late payments, insolvency, or breach of any agreement with Ascentium Capital, which could lead to accelerated payments, collateral seizure, and additional fees. Franchisees must insure the collateral at their own expense. Disputes regarding the loan must be resolved in Alabama, with a waiver of jury trial.
Performance Metrics
Total US Locations
994
Franchised Units
994
Corporate Units
0
Avg Square Footage
850
Franchising Since
2008
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Chester's International, LLC has no litigation history to report.
Bankruptcy History
Chester's International, LLC has no bankruptcy information to report.
Agreement Terms
Initial Term
5 years
Renewal Conditions
If Chester's International, LLC is willing to renew the agreement, franchisees must correct any identified deficiencies in their Restaurant's operation and upgrade, remodel, and redecorate the Restaurant to conform to the current image and system standards.
Training & Support Program
Franchisor Assistance
Before opening, Chester's International, LLC provides information on Restaurant layout and signs, reviews and approves plans and specifications, conducts a restaurant-readiness review, delivers initial brand standard training, provides access to confidential manuals, offers advice on operations, and sells necessary equipment, signage, and food items. Ongoing assistance includes periodic brand standard training, continuous advice on operations and new developments, preparation of point-of-purchase materials, regular Restaurant inspections, the right to use the CHESTER'S trademarks and confidential information, sales of equipment and food items, and recommendations for retail prices.
Initial Training Hours
32
Training Location
Franchisee's location
Ongoing Support
After opening, Chester's International, LLC provides periodic brand standard training programs and ongoing advice regarding restaurant management, food preparation, sales promotion, and service. The franchisor also prepares point-of-purchase marketing materials and periodically inspects the Restaurant. Franchisees are permitted to use the CHESTER'S trademarks and confidential information and can purchase equipment, signage, and food items from the franchisor. Chester's International, LLC also recommends retail prices for products sold at the Restaurant.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
2
Operational Details
Location Type
retail
Owner Participation
absentee-allowed
Territory Type
non-exclusive
Staffing Notes
Chester's International, LLC does not require principal owners to participate in the Restaurant's day-to-day operations. However, if owners choose not to be hands-on, they must employ a manager to handle the daily operations. Both the manager and other designated Restaurant employees are required to attend and successfully complete the franchisor's initial brand standard training program. Chester's International, LLC states that it does not share or codetermine employees' essential terms and conditions of employment, and franchisees have sole authority over these matters for their employees.