Is a Chesters franchisee allowed to use other channels of distribution to make sales away from their location?

According to Chesters's 2025 Franchise Disclosure Document, franchisees are generally restricted from using alternative distribution channels to generate sales outside of their physical location. The FDD specifies that franchisees have "no right to use other channels of distribution to make sales away from your location (such as the Internet, catalog sales, telemarketing, or other direct marketing sales) or in any territory." This means Chesters franchisees are expected to conduct sales primarily from their approved restaurant location.

However, there is an exception: with prior written approval from Chesters, a franchisee can solicit sales and orders from their franchised location for delivery to a remote location, including catering services. This allows for some flexibility in serving customers beyond the immediate vicinity of the restaurant, but it requires explicit permission from Chesters.

This restriction on alternative distribution channels is fairly common in the franchise industry, particularly for restaurant franchises, as franchisors often want to maintain control over brand consistency and customer experience. It also helps to avoid potential conflicts between franchisees operating in different territories or through different sales channels. Prospective Chesters franchisees should carefully consider this limitation and discuss any potential needs for alternative sales channels with Chesters before signing a franchise agreement.