Does Chesters issue any criteria for consideration of alternative suppliers?

According to Chesters's 2025 Franchise Disclosure Document, Chesters does not currently have a process in place for granting and revoking approval of alternative suppliers and does not issue any criteria for consideration. Chesters requires franchisees to purchase products only from designated or approved suppliers already established for the Chesters system, or only in compliance with their brand standards and specifications. Chesters states they have no intention or obligation to approve alternative or additional suppliers for any products.

This restriction means a prospective Chesters franchisee will have limited to no ability to negotiate pricing or source products from suppliers outside of Chesters's approved network. This could impact the franchisee's operating costs and potentially limit their ability to respond to local market conditions or preferences.

Chesters retains the right to revoke approval of particular products or suppliers if they no longer meet their standards. If Chesters revokes approval of a product or supplier, the franchisee must stop selling the disapproved products and stop purchasing from the disapproved supplier. Chesters and its affiliates have the right to receive payments from suppliers on account of their dealings with franchisees and to use these amounts without restriction. During 2024, Chesters received $37,118,501 from franchisee purchases of equipment and proprietary food products, which was 91.97% of their total revenue of $40,358,110.

Prospective franchisees should carefully consider these restrictions and their potential impact on their business. It would be prudent to discuss the approved supplier network, pricing, and the process for suggesting new suppliers with existing franchisees during their due diligence.