Does Chesters control the resale prices at my restaurant?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
- Recommend retail prices for the products you prepare and sell at your Restaurant (we generally do not control your resale prices).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–29)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, Chesters generally does not control the resale prices for the products you sell at your restaurant. Chesters may recommend retail prices, but the ultimate decision on pricing rests with the franchisee.
This is a significant benefit for prospective franchisees, as it allows them to adapt their pricing strategies to local market conditions and competitive pressures. Franchisees can set prices that maximize their profitability within their specific geographic area. This flexibility is not always the case in franchising, as some franchisors require franchisees to adhere to a strict pricing structure.
However, it is important to note that while Chesters does not generally control resale prices, they do have the right to approve all advertising and promotional materials. This suggests that Chesters maintains some level of influence over how products are marketed, which could indirectly impact pricing decisions. Franchisees should carefully consider these factors and discuss pricing strategies with Chesters during their due diligence process.