What items does Chesters negotiate purchase agreements for with suppliers?

According to Chesters's 2025 Franchise Disclosure Document, Chesters negotiates purchase agreements with suppliers for several key items used in the operation of a franchise. These items include shortening, breading supplies, frozen poultry, potato wedges, paper goods, packaging, and equipment. Chesters states that it negotiates these agreements, including price terms, to promote the overall interests of the franchise system and its own interests as the franchisor, rather than the interests of any specific franchisee.

This means that while franchisees are required to purchase these items from approved suppliers, Chesters actively works to secure favorable pricing and terms. However, the FDD makes it clear that Chesters's priority is the health of the entire system, which may not always align perfectly with the individual franchisee's immediate financial interests. Franchisees should be aware that Chesters has the discretion to make decisions that benefit the system as a whole, even if those decisions don't result in the lowest possible cost for every franchisee.

It is also important to note that Chesters does not operate any purchasing or distribution cooperatives within its system. This is a fairly common arrangement in franchising, where franchisees pool their purchasing power to negotiate better deals with suppliers. The absence of such a cooperative in the Chesters system means that franchisees rely solely on Chesters's negotiations, without the ability to directly influence purchasing decisions or leverage collective buying power.