MitchyMatt said:
2. If they don't spawn in the game when you first initialize it, then chances are they won't be established in the game by monarchs (if they even can). You'd have to make your own order. You need to meet the requirements to make their chapter.
On the contrary. Kings will be able to establish exactly those KO chapters that don't have a chapter in the game yet. Except for the Griffons. Once all the chapters are in the game, they won't create any more. Meanwhile, lords can create their own CKO (up to a maximum of 6 each iirc), which comprises of knights only, based on given templates. These can't be upgraded any further.
saiyanwarrior said:
Thank you for the reply and in terms of improving my Sgts do I just improve the knights and they are adjusted accordingly?
No, you have to talk to companions in your party to ask them to train your CKO knights and sergeants. I'd suggest to read the Wikia, it has a lot of info that you'll find interesting.