conditional

If a Chesters franchisee purchases used equipment, does it need to be purchased from an approved supplier?

Chesters Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

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, franchisees have some flexibility when it comes to purchasing used equipment. While Chesters encourages franchisees to purchase new equipment and fixtures, the FDD states that franchisees can purchase used equipment without needing to buy it from an approved supplier. However, this is conditional.

Specifically, the used equipment must have been in service for less than two years and must still meet Chesters's quality standards. This provides an opportunity for franchisees to potentially save money on initial investment costs by sourcing used equipment, but it also places the onus on the franchisee to ensure that the equipment meets Chesters's standards.

It is important to note that this exception applies only to used equipment. New 'core equipment, signage, fixtures, and supplies' must be purchased from Chesters or a designated supplier. Franchisees should carefully review Chesters's standards and specifications for all equipment to ensure compliance, whether purchasing new or used items. This helps maintain brand consistency and quality across all Chesters locations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.