What efforts will Chesters use to resolve conflicts between CHESTER'S Restaurant franchises and other food-service operators selling BirdShack products?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
An affiliate of ours, BirdShack, LLC ("BirdShack"), sells chicken-related food products (under the BirdShack name) to non-Chester's food-service operators (directly or through unaffiliated distributors). These operators have no right to use any Mark you have the right to use under your Agreement. They will sell chicken products as a menu item under their own trade names and brands as part of their existing retail foodservice businesses, or under the BirdShack name. These operators sell their chicken products from their own physical premises, although they might engage in some off-premises advertising that competes with your advertising. We do not anticipate any material conflicts between CHESTER'S Restaurant franchises and these other food-service operators in terms of customers and support, although we will use reasonable efforts to resolve any conflicts that do arise.
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, Chesters anticipates that there will not be any material conflicts between CHESTER'S Restaurant franchises and other food-service operators selling BirdShack products. However, Chesters states that it will use reasonable efforts to resolve any conflicts that do arise.
Chesters's affiliate, BirdShack, LLC, sells chicken-related food products under the BirdShack name to non-Chesters food-service operators. These operators do not have the right to use any of the marks that Chesters franchisees have the right to use under their franchise agreement. These operators sell chicken products as a menu item under their own trade names and brands as part of their existing retail foodservice businesses, or under the BirdShack name. These operators sell their chicken products from their own physical premises, although they might engage in some off-premises advertising that competes with a Chesters franchisee's advertising.
It is important to note that Chesters does not offer franchisees an exclusive territory. Franchisees may face competition from other franchisees, from outlets that Chesters owns, or from other channels of distribution or competitive brands that Chesters controls. This means that a Chesters franchisee could face competition from other food-service operators selling BirdShack products in the same area. While Chesters intends to use reasonable efforts to resolve any conflicts that arise, the franchisee should be aware that there is no guarantee that Chesters will be able to resolve the conflict to the franchisee's satisfaction.