What are the 'Proprietary Goods' that Chesters franchisees are required to purchase?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
We license the Marks to certain unaffiliated suppliers to make and brand the proprietary seasonings and specially-formulated pre-prepared mixes (which includes breading, batter dip, and marinades), sauces, branded fresh and frozen poultry products, frozen potato wedges and paper products (which includes packaging, napkins, cups, and other products used in the operation of the Restaurant) (collectively, the "Proprietary Goods"). The suppliers then sell the Proprietary Goods to our designated distributors, and you must purchase the Proprietary Goods from one or more of our designated distributors.
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 must purchase 'Proprietary Goods' from designated distributors. These 'Proprietary Goods' are items that Chesters licenses the Marks to certain unaffiliated suppliers to make and brand.
The 'Proprietary Goods' include proprietary seasonings and specially-formulated pre-prepared mixes (which includes breading, batter dip, and marinades), sauces, branded fresh and frozen poultry products, frozen potato wedges and paper products (which includes packaging, napkins, cups, and other products used in the operation of the Restaurant).
Chesters restricts the sources of these trade secret and proprietary food products and other branded items to protect trade secrets, assure quality, assure a reliable supply of products that meet their standards, achieve better purchase and delivery terms, control use of the Marks by third parties, and monitor the manufacture, packaging, processing, and sale of these items. Franchisees are required to purchase these items from designated distributors.