Chester's Franchise Cost, Revenue & Review 2026
- Investment
- $28K – $307K
- Disclosed sales
- not disclosed
- SBA charge-off
- Limited · 10 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Chester's is a quick-service fried-chicken franchise built for non-traditional sites, convenience stores, supermarkets, and grab-and-go kiosks. Franchisees run a store-in-store or express counter serving fried chicken, tenders, and sides.
FranchiseVerdict summary · 2026
A Chester's franchise requires a total initial investment of $28K – $307K, including a $2K – $4K franchise fee. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2026 filing · Data extracted: · Last cited check: · Staleness risk: low - the current year's filing
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored2 of 3 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $28K – $307K
- 1st pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- Flat fee
- Units
- 918
- 92nd pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $28K – $307K including a $4K franchise fee.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better).
- GROWTHNegative: net -76 franchised outlets in the latest year (120 opened, 195 closed) (Item 20).
- DECLINESystem contracting at -8.1% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Chester's International, LLC
- Predecessor
- Chester's International, LLC (the "First Chester's")
- Prior franchisor entity
- CEO title
- Chief Executive Officer and Managing Director
- Wynn Giles
- Incorporated in
- Alabama
- HQ
- 1531 3rd Avenue North, Suite 110, Birmingham, Alabama 35203
- Auditor
- Warren Averett, LLC
- Audited financials
- Franchisor revenue
- $30.6M
- vs $40.4M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Wynn Giles
- Headquarters
- Alabama
- Founded
- 2002
- FDD year
- 2026
- States available
- 47
Can you afford it, and what does the money buy?
Entry cost runs 66% below the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $4K | $4K |
| Working capital (3–6 mo) | $10K | $25K |
| Equipment, build-out, other | $14K | $278K |
| Total initial investment | $28K | $307K |
Source: Chester's 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $28K – $307K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $25K
- Top 40% of category vs category
- Franchise fee
- $2K – $4K
- Top 40% of category vs category
- Royalty
- No ongoing royalty fee disclosed; franchisor derives reve…
- Ad fund
- No advertising fund contribution required; a $200/quarter…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $250 |
| Training fee | $4K |
| Inventory (initial) | $2K – $9K |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Chester's makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Chester's unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -8.1% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Chester's Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 918
- Opened
- 120
- Last reporting year
- Closed
- 195
- Terminated
- 11
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 33
- Term expired, not renewed (per Item 20)
- Turnover rate
- 21.2%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -8.1%
- Net unit change over 3 years
- 3-yr CAGR
- -8.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 11
- Not renewed
- 33
- Transferred
- 15
- Reacquired
- 0
- Franchisor bought back
- Transfer rate
- 1.9%
- Owners selling to other franchisees
- Continuity rate
- 90.1%
- Units that stayed open
- Termination rate
- 5.0%
- Franchisor-initiated terminations
- Ceased ops
- 5.9%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 45 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
742 current owners across 45 states; 23 former (terminated, transferred or not renewed) listed separately.
- AR 71
- CA 59
- MS 41
- TX 40
- TN 39
- MO 34
- WI 33
- IA 32
- NE 29
- WA 27
- GA 24
- KS 24
- +33 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 10
- Loan volume
- $16.3M
- Median loan
- $1.7M
- 50th percentile
- Charge-off rate
- Limited · 10 loans
- Limited SBA coverage: 10 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 10 loans
- 5-yr charge-off
- Limited · 10 loans
- Loans approved 2021+
- Active lenders
- 8
- Defaults
- 0
- Typical loan rate
- 6.8%
- avg rate to borrowers
- Franchised industry avg
- 5.0%
- n=3,380 loans
- Jobs supported
- 98
- 0.6 per loan
- Lender concentration
- 22%
- top lender's share
Borrower mix: 57% went to startups / new businesses, 43% to established operators
Franchise vs independent — in gasoline stations with convenience stores, franchised businesses charge off at 5.0% vs 16.0% for independents — franchising is associated with 69% lower SBA default risk in this category.
Top lenders financing Chester's franchisees
Showing 3 of 8 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Chester's from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 82%
- Avg interest rate
- 6.81%
- Lender concentration
- 22.2%
- Job velocity
- 0.6 per $100K
- NAICS benchmark
- 6.7%
- NAICS 447110
- Jobs supported
- 98
Top SBA lendersTop lender holds 22% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Enterprise Bank & Trust | 2 | $5.5M | N/A |
| 2 | SouthState Bank, National Association | 1 | $350K | N/A |
| 3 | Byline Bank | 1 | $1.7M | 0.0% |
| 4 | Celtic Bank Corporation | 1 | $3.7M | N/A |
| 5 | North State Bank | 1 | $265K | N/A |
| 6 | Harvest Small Business Finance, LLC | 1 | $1.4M | N/A |
| 7 | First Savings Bank | 1 | $2.0M | 0.0% |
| 8 | First National Community Bank | 1 | $1.1M | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 3 | 0 | -- |
| FLFlorida | 1 | 0 | -- |
| GAGeorgia | 1 | 0 | 0.0% |
| INIndiana | 1 | 0 | 0.0% |
| NYNew York | 1 | 0 | -- |
| TXTexas | 1 | 0 | 0.0% |
| WAWashington | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Declining unit base, missing profitability data, unprotected territory, and unusually low royalties suggest a mature or struggling system with weak unit economics and limited franchisor support infrastructure.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Warren Averett, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 56 / 100 verdict
- 01MINORUnit count declining 0.9% YoY indicates shrinking franchise system with potential saturation or performance issues
- 02MEDNo average revenue or net income disclosure (missing Item 19) prevents realistic ROI assessment and suggests weak unit economics
- 03MINORExtremely low royalty fee ($800/year) relative to $27.5K-$301.5K investment range signals either underdeveloped support system or franchisor struggling with unit viability
- 04MINORUnprotected territory creates direct competition risk from other franchisees and could cannibalize sales in high-density areas
- 05MINORNo 'going concern' statement absent—franchisor financial stability and long-term viability unconfirmed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 1 year |
| Allowed renewalsℹ | 2 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 5 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 20 days |
| Mandatory arbitration | No |
| Jury trial waiver | No |
| Governing law | Alabama |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 36 hrs
- Training location
- Franchisee's Chester's Restaurant (on-site)
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- Chester's POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Chester's POS System
Item 20 · call current owners
Franchisee Contacts
765 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Chester's franchise?
The total investment to open a Chester's franchise ranges from $28K – $307K, with an initial franchise fee of $4K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Chester's franchise owners earn?
Chester's makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Chester's?
Chester's is franchised by Chester's International, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Chester's FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Chester's FDD and qualifies whose outlets they describe.
What is Chester's's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Chester's (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Chester's franchise locations are there?
As of their most recent FDD filing, Chester's has 918 total units in the United States, including 918 franchised units and 0 company-owned units. 120 new units were opened in the latest reporting year.
Is Chester's a good franchise to buy?
FranchiseVerdict rates Chester's as a B-grade franchise with a verdict score of 56 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Chester's, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.