Did Chesters' affiliates receive any revenue from direct franchisee purchases and leases during 2024?

According to Chesters's 2025 Franchise Disclosure Document, Chesters's affiliates did not receive any revenue from direct franchisee purchases and leases during 2024. However, Chesters itself received $37,118,501 from direct franchisee purchases of certain equipment and proprietary food products, as well as from purchases by unaffiliated suppliers and grocery wholesalers to whom Chesters sold certain equipment and proprietary food products for resale to franchisees. This revenue represents 91.97% of Chesters's total revenue of $40,358,110.

This indicates that while Chesters's affiliates are not directly profiting from franchisee purchases and leases, Chesters itself derives a significant portion of its revenue from these transactions. Franchisees are required to purchase certain equipment and proprietary food products either directly from Chesters or from approved suppliers and wholesalers, contributing substantially to Chesters's overall financial performance.

Prospective franchisees should be aware of these purchasing requirements and their potential impact on their operating costs. While Chesters negotiates purchase agreements with suppliers, these agreements are intended to benefit the franchise system and Chesters as the franchisor, not necessarily individual franchisees. Therefore, it is important for franchisees to carefully evaluate the costs associated with these required purchases and factor them into their financial projections.