Chester's Franchise Cost, Revenue & Review 2026
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. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 10 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $28K – $307K
- 1st pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 918
- 92nd pct Service Resta…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · 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.
- RETURNSItem 19 contains no financial performance representation; franchisor explicitly states it does not make any representations about franchisee future or past financial performance.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 0.0% across 10 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- 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
- $40.4M
- vs $30.6M 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 75% 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 did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Chester's unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
53%
Within the 30–60% "attractive franchise" band
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
Item 19 contains no financial performance representation; franchisor explicitly states it does not make any representations about franchisee future or past financial performance.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How Chester's Compares
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
- 151
- 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
3-year detail · Item 20
- Opened (3yr)
- 120
- Closed (3yr)
- 151
- Terminated (3yr)
- 11
- Non-renewed (3yr)
- 33
- Transfers (3yr)
- 15
- Reacquired (3yr)
- 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.
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
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 8
- Defaults
- 0
- Typical loan rate
- 6.8%
- avg rate to borrowers
- Franchised industry avg
- 5.0%
- brand beats franchise avg ↓
- 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.
Premium insight
SBA Lending Report
Deep-dive into Chester's's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 8 lenders with concentration factor
- Per-state charge-off rates across 7 states
- Startup risk premium and job creation velocity
- 5-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 10 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
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)
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 | none |
| 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
FDD download
Chester's · FDD (2026) PDF
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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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?
Based on SBA 7(a) loan data, Chester's has a charge-off rate of 0.0% across 10 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
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), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.