2026 FDD Issued Apr 6, 2026 Minnesota Commerce (CARDS)
Chester's Franchise Cost (2026)
A Chester's franchise costs an estimated $27,500 – $306,500 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $3,500 initial franchise fee (Item 5) and covers this format: Store-in-Store/Non-Trad Restaurant. Item 6 lists royalty: $0 per month, subject to the conditions below. This record has unresolved source-review issues and was published provisionally before independent verification was complete.
Read the source-review hold before using these figures.
- Total investment
- $27.5K – $307KItem 7 source and qualifications
- Franchise fee
- $3,500Item 5 source and terms
- Royalty
- $0 per monthItem 6 conditions and fee bases apply
What stands out about Chester's
Chester's departs from conventional quick-service restaurant franchise structures by charging no ongoing percentage royalty or national marketing levy on sales. Instead, the franchisor earns revenue through required purchases of proprietary breading, seasonings, sauces, and branded packaging from designated suppliers, supplemented by fixed monthly technology and quarterly marketing support fees.
Facility build-out within host convenience stores or retail centers accounts for the largest share of upfront variance between $27,500 and $306,500. Item 7 shows that physical construction can range from zero for existing commercial kitchens up to substantial remodeling outlays, while initial franchise fees remain confined to the $3,500 training charge.
System outlet counts contracted to 918 franchised locations by the close of 2025, even as new franchisee additions expanded with 120 unit openings. Departures outpaced additions, mostly through ceased operations and non-renewals rather than formal terminations.
The standard franchise agreement provides a 5-year operational window without unilateral renewal rights. Franchisees seeking to continue operations after expiration depend on mutual franchisor consent and must execute updated contract agreements and complete required facility upgrades.
What are the initial franchise fees and financial requirements for Chester's?
Item 5 lists an initial franchise fee of $3,500 for Chester's. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Item 5 (PDF page 15): there is no separate initial franchise fee. A non-refundable Training Fee is paid in a lump sum at signing: $3,500 for a Store-in-Store/Non-Trad Restaurant (the format in the main Item 7 chart) and $2,000 for a Supermarket or Express Restaurant. In fiscal 2025, training fees received ranged from $0 to $3,500. Repeated restaurant-readiness assessments may cost about $1,000 each.
Source: Chester's 2026 FDD, Item 5, PDF p. 15.
This record lists no minimum net worth or liquid-capital requirement for Chester's, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.
How much does it cost to open a Chester's franchise? (Item 7)
Source: Chester's 2026 FDD, Item 7, PDF p. 18.
Item 7 of Chester's 2026 Franchise Disclosure Document estimates the total cost to open one store-in-store/non-trad restaurant at $27,500 – $306,500. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Training Fee | $3,500 | $3,500 |
| Insurance | $0 | $10,000 |
| Build-out Cost | $0 | $200,000 |
| Rent and Security Deposit | See Note 2 | See Note 2 |
| Equipment, Furniture, Signage, and Fixtures | $12,000 | $55,000 |
| Initial Inventory | $2,000 | $9,000 |
| Grand Opening Advertising | $0 | $4,000 |
| Additional Funds (3 Months) | $10,000 | $25,000 |
| Total | $27,500 | $306,500 |
Other formats
| Format | Total investment |
|---|---|
| Chester's Supermarket Restaurant | $15,500 – $306,500 |
| Chester's Express Restaurant | $27,500 – $306,500 |
For comparison, the median high-end investment among 25 restaurants & food records without a source-review hold is $1,297,100.
Item 7 (PDF pages 18-20) details outlays for a Store-in-Store or Non-Traditional location. Host real estate lease expenses are excluded as units operate inside host premises. The 7 numerical line items match the printed $27,500 to $306,500 total.
What ongoing royalties and fees does Chester's charge? (Item 6)
Source: Chester's 2026 FDD, Item 6, PDF p. 15.
Item 6 of Chester's 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Royalty | $0 per month | When it applies | Item 6 (PDF pages 15-17) lists no royalty. It states that, apart from the product and service purchases described in Item 8, the listed fees are all that the franchisor imposes. Item 8 (PDF page 27) says franchisee purchases produced 88.97% of the franchisor's 2025 revenue, and its income statement (PDF page 77) shows product sales, supply chain programs and franchise fees, with no royalty revenue. (Item 6, PDF p. 15) |
| Marketing Support Fee | $200 per quarter | Every period | $200 per quarter ($800 annually), which the franchisor may raise up to $325 per quarter with 90 days notice (PDF page 15). (Item 6, PDF p. 15) |
| Marketing Support Fee for Special Offerings or Promotions | Varies | When it applies | Capped at $200 per promotion when implemented (PDF page 15). (Item 6, PDF p. 15) |
| POS Technology Fee | $250 – $325 per month | Every period | $250 to $325 per month for Store-in-Store locations, subject to an upper cap of $350 per month upon notice (PDF page 16). (Item 6, PDF p. 16) |
| Additional Training or Assistance | $1,000 | When it applies | Up to $1,000 per day as incurred (PDF page 16). (Item 6, PDF p. 16) |
| Reinspection or Revisit | $300 | When it applies | $300 per visit following failed inspections or site unreadiness (PDF page 16). (Item 6, PDF p. 16) |
| Product and Service Purchases | Varies | When it applies | Mandatory purchase of proprietary batter, breading, sauces, and packaging through designated distributors under Item 8 (PDF page 16). (Item 6, PDF p. 16) |
| Product Cancellation Fee | 10% | When it applies | 10% of canceled order value (PDF page 16). (Item 6, PDF p. 16) |
| Product Restocking Fee | 20% | When it applies | 20% of returned order value plus freight costs (PDF page 17). (Item 6, PDF p. 17) |
| Product Storage Fee | 10% | When it applies | 10% of order value for rescheduled delivery dates (PDF page 17). (Item 6, PDF p. 17) |
| Indemnification | Varies | When it applies | Reimbursement if the franchisor is held liable for, or incurs costs defending, claims from your restaurant's operation. (Item 6, PDF p. 17) |
| Liquidated Brand Damages | $10,000 | When it applies | $10,000 for breach of non-competition covenants (PDF page 17). (Item 6, PDF p. 17) |
| De-Branding Fee | $10,000 | When it applies | $10,000 if de-branding is not finished within 14 business days after contract termination (PDF page 17). (Item 6, PDF p. 17) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
Chester's startup investment and modeled fees over 10 years
A source check placed this record on review hold. Automatic fee estimates are withheld until the outstanding issues are resolved. Item 6 lists no royalty or brand-fund percentage. Its recurring charges are a quarterly marketing support fee and, for Store-in-Store/Non-Trad restaurants that buy the recommended POS hardware, a monthly POS technology fee; the franchisor and its affiliates also sell required products under Item 8. Without a sales-based royalty, this record does not produce an annual fee estimate. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: Chester's franchised outlet history
Source: Chester's 2026 FDD, Item 20, PDF p. 53.
Item 20 Table 3 reports 918 franchised outlets at the end of 2025. The company-owned table reports a further 0 outlets.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 1,081 | 69 | 148 | 1,002 | — |
| 2024 | 1,002 | 100 | 109 | 993 | — |
| 2025 | 993 | 120 | 195 | 918 | — |
Calculated outlet totals, net growth and exit rates are withheld because this record has not cleared the current Item 20 source checks. The table retains the outlet counts printed in Item 20. Read the unresolved source issues.
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables.
15 units changed owners in 2025.
Item 20 Table 3 (PDF page 53) prints 993 franchised restaurants at the end of 2024 and the start of 2025, and its rows add up; Table 1 (PDF page 47) prints 994 for the same dates. The record keeps Table 3. All restaurants in the tables are Store-in-Store/Non-Trad; there are no company-owned outlets.
How much do Chester's franchise owners make? (Item 19)
Source: Chester's 2026 FDD, Item 19, PDF p. 46.
Chester's 2026 FDD has no Item 19 financial performance representation, so it gives no official sales, profit or owner-pay figures. Treat any earnings claim you hear from a salesperson with caution, and ask current owners (their contacts are listed in Item 20).
Item 19 (PDF page 46) confirms that the franchisor makes no financial performance representations regarding historic or projected sales, revenues, or profits.
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How long is the Chester's franchise agreement term?
Source: Chester's 2026 FDD, Item 17, PDF p. 43.
The standard Chester's franchise agreement runs 5 years.
Item 17 (PDF page 43): 5-year initial term for Store-in-Store/Non-Trad units (3 years for Supermarket or Express formats). The agreement grants no automatic renewal rights; extension requires mutual consent and execution of then-current contracts.
How long does it take to open a Chester's franchise? (Item 11)
Source: Chester's 2026 FDD, Item 11, PDF p. 32.
Item 11 of the 2026 FDD states the time from signing the franchise agreement and paying the training fee to opening: approximately 2 to 4 months. The agreement requires you to open 180 days.
Item 11 (PDF page 32): Locations typically take 2 to 4 months to open following agreement execution, with an outside opening deadline of 180 days.
Franchises with a similar investment range
These published records are selected by proximity to Chester's $27,500 low-end Item 7 investment, starting with Restaurants & Food. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
- Auntie Anne's $158K – $836K Source review pending Restaurants & Food
- Menchie's Frozen Yogurt $180K – $515K Source review pending Provisional publication Restaurants & Food
- Cinnabon $196K – $715K Source review pending Provisional publication Restaurants & Food
- Domino's $231K – $744K Restaurants & Food
- Wayback Burgers $256K – $859K Restaurants & Food
- Subway $263K – $630K Source review pending Provisional publication Restaurants & Food
Compare other restaurants & food franchises
Sources
Chesters International, LLC Franchise Disclosure Document, issued April 6, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 15
- Item 6: cited PDF p. 15
- Item 7: cited PDF p. 18
- Item 19: cited PDF p. 46
- Item 20: cited PDF p. 53
- Agreement term (Item 17): cited PDF p. 43
Page references for Chester's use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- November 3, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued April 6, 2026).
- November 2, 2026: Source review hold recorded. Unresolved corrections are listed in this source section.
- November 2, 2026: Provisional publication approved per owner directive: Owner directed on November 2, 2026 that every remaining batch 6 brand go live, including brands whose FDDs print conflicting figures. Each record was rechecked against its FDD on November 3, 2026; the unresolved source conflicts remain disclosed and the record is not marked verified.
- November 2, 2026: Rechecked against the April 6, 2026 Minnesota Clean FDD: Items 5, 6, 7, 11, 17, 19 and 20. Corrected the training fee to $3,500 for the selected format, removed a zero royalty row that is not in Item 6, added the Indemnification row and recorded the Item 20 Table 1 versus Table 3 difference. Remains a draft.
- November 2, 2026: Added a $0 royalty row documenting that Item 6 charges no royalty and the franchisor earns mainly from required product purchases (Item 8 and the 2025 income statement).
- October 31, 2026: Drafted from the April 6, 2026 Clean FDD filed in Minnesota: Items 1, 5, 6, 7, 11, 17, 19, and 20.