What does the Chesters franchise agreement state regarding the franchisee's instruction to pay the supplier?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates have the right to receive payments from suppliers on account of their actual or prospective dealings with you and other licensees and to use all amounts we receive without restriction for any purposes we deem appropriate (unless we and our affiliates agree otherwise with the suppliers).
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to the 2025 Chesters Franchise Disclosure Document, Chesters and its affiliates have the right to receive payments from suppliers based on their dealings with franchisees. This means that suppliers may provide Chesters with payments or other considerations related to their business with Chesters franchisees.
Chesters retains the right to utilize these funds without any restrictions, unless there is an agreement in place between Chesters and the suppliers that specifies otherwise. This arrangement allows Chesters to benefit financially from the relationships its franchisees have with suppliers.
For a prospective franchisee, this clause indicates that suppliers may have financial incentives to favor Chesters' interests. It is important for franchisees to be aware of this arrangement and to ensure that they are receiving fair pricing and terms from suppliers, independent of any payments made to Chesters. Franchisees should carefully evaluate supplier options and negotiate terms that are most favorable to their business, regardless of any potential benefits Chesters receives from those suppliers.