Does Chesters sell equipment to franchisees?

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Before you open your Restaurant, we (and/or one of our Area Developers) will:

• Give you information about the Restaurant's layout requirements and signs. [Agreement — Section 6]
• Review and approve your plans and specifications for the Restaurant and conduct a restaurant-readiness review assessment. [Agreement — Section 6]
• Provide an initial brand standard training program (described below) to instruct you and your employees about required procedures and techniques to operate the Restaurant. [Agreement — Sections 4 and 7]
• Give you access to one copy of our confidential manuals (the "Manuals"). [Agreement — Section 13] The Manuals for a CHESTER'S Restaurant have 140 pages. The table of contents is in Exhibit C.
• Give you advice regarding operating the Restaurant and new developments, techniques, and improvements in areas of restaurant management, food preparation, sales promotion, and service. [Agreement — Section 4]
• Sell you equipment, signage, and various food items. (We deliver these items, or cause them to be delivered, but are not required to install anything.) [Agreement — Sections 5, 6, and 9]

Continuing Obligations

During your operation of the Restaurant, we (and/or one of our Area Developers) will:

• Provide periodic brand standard training programs we deem appropriate. [Agreement — Sections 4 and 7]
• Give you advice regarding operating the Restaurant and new developments, techniques, and improvements in areas of restaurant management, food preparation, sales promotion, and service. [Agreement — Sections 4 and 8]
  • 1. Prepare point-of-purchase materials for you. [Agreement — Section 5]
  • 4 Periodically inspect the Restaurant. [Agreement — Section 11]
  • 1. Let you use our Marks. [Agreement — Section 12]
  • 1. Let you use our confidential information. [Agreement — Section 13]
• 1. Sell you equipment, signage, and various food items. [Agreement — Sections 6 and 91
• Recommend retail prices for the products you prepare and sell at your Restaurant (we generally do not control your resale prices).

Site Selection

We first must approve your site before signing the Agreement, even if you already have a site picked out for the Restaurant. When you approach us, we will give you our site-selection criteria for a Restaurant. Factors we consider in evaluating Restaurant sites include (1) a site's visibility from adjacent traffic arteries, (2) ease of entry from and exit to adjacent streets, (3) the size, density, and income levels of population in the surrounding area, (4) the rental market in the area, (5) types of nearby businesses, (6) projected cost of leasehold improvements, and (7) proximity to another franchised Restaurant or to a Licensed Restaurant. We must accept all sites before you have the right to sign any lease, sublease, or other document for the site. We will evaluate the information you give us about a site. Our review process might or might not involve a physical site inspection. We will not take an unreasonable amount of time to review your proposed site. However, we need not respond within any particular time. We will either accept or reject your proposed site. We will not unreasonably withhold our acceptance of a site but can reject one we consider inappropriate. Although we have the right to accept or reject a Restaurant's location, we will not select or designate a Restaurant site for you.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–29)