factual

If Chesters revokes approval of a supplier, am I required to stop purchasing from them?

Chesters Franchise · 2025 FDD

Answer from 2025 FDD Document

We have the right to revoke our approval of particular products or suppliers when we determine that those products or suppliers no longer meet our standards. If we notify you that we have revoked approval of a product or supplier, you must stop selling any disapproved products and stop purchasing from any disapproved supplier.

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, if Chesters revokes approval of a particular product or supplier, franchisees must stop selling the disapproved products and stop purchasing from the disapproved supplier. Chesters has the right to revoke approval of particular products or suppliers when they determine that those products or suppliers no longer meet their standards.

Chesters requires franchisees to purchase food items, ingredients, equipment, furnishings, supplies, materials, and other items from suppliers that meet Chesters' standards and have received their approval. For trade-secret or proprietary food products and other branded items, Chesters has the right to limit suppliers to themselves, their affiliates, and/or other specified exclusive sources, and franchisees must acquire these items from those sources at the prices they decide to charge.

Chesters also licenses its Marks to certain unaffiliated suppliers to make and brand the proprietary seasonings and specially-formulated pre-prepared mixes, sauces, branded fresh and frozen poultry products, frozen potato wedges, and paper products. These suppliers then sell these Proprietary Goods to Chesters' designated distributors, and franchisees must purchase the Proprietary Goods from one or more of these designated distributors. This system allows Chesters to maintain quality control and protect its trade secrets, while also potentially benefiting from supplier payments based on franchisee purchases.

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.