Chester's International, LLC

Given the 11.0% annual turnover rate and 10.9% closure rate, both significantly above industry norms, what specific operational or market challenges have driven the loss of 87 units over the past 3 years?

Why did the system experience 148 closures in 2023, the highest single-year loss in the provided data, and what corrective actions has the franchisor implemented to address the continued annual closures of 100+?

The non-renewal rate stands at 4.4% annually. What are the primary reasons franchisees choose not to renew, and what support does the franchisor provide to underperforming units before non-renewal?

With a 5-year maximum contract term (well below the 20-30 year typical range), how does this short duration affect franchisee investment recovery and long-term unit viability?

The renewal clause requires mutual written consent from both parties with no obligation to renew. Can you provide examples of renewal denial and explain the criteria or conditions that would result in non-renewal?

What is the typical performance threshold a franchisee must meet to secure renewal, and how many franchisees have been denied renewal in the past 3 years?

With zero non-compete years post-exit, why does the franchisor not require the typical 2-year restriction, and has this resulted in competitive issues or franchisee departures to competitors?

The system has no Item 19 financial performance disclosure. Can you provide historical average unit volumes (AUV), median profitability, or other financial metrics that would help assess unit economics?

What specific support and training programs exist to address the lower-than-typical Support & Training score of 83 versus the industry standard of 90-100?

Can you explain the two renewal conditions specified in the contract and why they fall significantly short of the typical 7-9 conditions found in comparable franchises?

How many franchisees have requested or been granted territorial exclusivity, and what is the franchisor's position on encroachment protection for existing units?

Given the $325 annual technology fee is the only disclosed ongoing cost, what other royalty, advertising fund, or recurring fees do franchisees pay that are not listed?

Over the past 3 years, how many units were closed due to lease terminations, landlord disputes, or real estate issues versus operator choice or poor performance?

What was the average unit volume and profitability of units that closed in 2023 (148 closures) compared to currently operating units?

Does the franchisor provide any buyback options or assistance to franchisees during the sale or closure process, particularly given the high exit rates?

The System Health score of 48 is below the typical 50-75 range. What specific metrics or operational areas contributed to this below-average score?

Has the franchisor experienced any regulatory investigations, complaints to state franchise regulators, or class action disputes that would not appear in the litigation data?

What is the typical investment cost to open a Chester's International unit, and how quickly do franchisees typically recoup their initial investment given current unit economics?

For the 19 unit transfers in 2023, what was the average sale price relative to initial investment, and how many transfer requests were denied by the franchisor?

What percentage of currently operating units are profitable, and at what annual revenue threshold does a unit typically become cash-flow positive?