Is Chesters the only approved supplier for equipment and fixtures?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
We encourage you to purchase new equipment and fixtures for the Restaurant. We currently are the designated supplier for certain core equipment, signage, fixtures, and supplies (fryers, breading and batter table, hot display case, landing table, and oil-removal caddy) approved for use in the Restaurant. We currently sell the core equipment, signage, fixtures, and supplies at a bona fide wholesale price we set from time to time based in part on our current cost. If you obtain financing for core equipment, signage, fixtures, and supplies through Ascentium (see Item 10), the purchase price for core equipment, signage, fixtures, and supplies will be our then current bona fide wholesale price plus an additional 5% to 10% of the purchase price, which is roughly equivalent to the amount that Ascentium will deduct from their payment to us for the core equipment, signage, fixtures, and supplies as part of our arrangement to reduce the interest rate for the financing you obtain through Ascentium. See Item 10.
In limited circumstances, however, we may allow you to purchase the core equipment, signage, fixtures, and supplies from another designated supplier. We are also an approved (but not the only) supplier for other equipment and fixtures, which are also available through designated suppliers. While we encourage you to purchase new equipment and fixtures, you can purchase used equipment (which need not be purchased from an approved supplier) if it has been in service for less than 2 years and otherwise meets our quality standards. Besides the items described above, we also currently are an approved (but not the only) supplier of marketing materials. Except for us, in which our officers indirectly owns an interest, one of our officers owns a non-controlling interest in Wynn's Grain and Spice, LLC, which currently manufactures various consumables and sells those items to us for resale to our franchisees (indirectly through unaffiliated third-party distributors and grocery wholesalers).
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, Chesters is the designated supplier for certain core equipment, signage, fixtures, and supplies, including fryers, breading and batter tables, hot display cases, landing tables, and oil-removal caddies. However, Chesters is not the only approved supplier for other equipment and fixtures, as these are also available through other designated suppliers.
While Chesters encourages franchisees to purchase new equipment and fixtures, franchisees have the option to purchase used equipment from any supplier, provided the equipment has been in service for less than two years and meets Chesters's quality standards. Chesters also acts as an approved supplier for marketing materials, but again, is not the only option.
It is important to note that Chesters has the right to modify standards for the restaurant, including those relating to signage, equipment, fixtures, and furnishings. Franchisees are obligated to comply with these modifications within the timeframe specified by Chesters. Chesters also has the right to revoke approval of particular products or suppliers if they no longer meet the brand's standards, requiring franchisees to cease purchasing from disapproved suppliers and selling disapproved products.