Can Chesters sell to non-Chester's food-service operators directly?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
We may also sell to non-Chester's food-service operators (directly or through unaffiliated distributors) chicken cooking equipment that is similar to the equipment you will buy from us or unaffiliated distributors and then use in operating your Restaurant.
An affiliate of ours, BirdShack, LLC ("BirdShack"), sells chicken-related food products (under the BirdShack name) to non-Chester's food-service operators (directly or through unaffiliated distributors). These operators have no right to use any Mark you have the right to use under your Agreement. They will sell chicken products as a menu item under their own trade names and brands as part of their existing retail foodservice businesses, or under the BirdShack name. These operators sell their chicken products from their own physical premises, although they might engage in some off-premises advertising that competes with your advertising. We do not anticipate any material conflicts between CHESTER'S Restaurant franchises and these other food-service operators in terms of customers and support, although we will use reasonable efforts to resolve any conflicts that do arise. BirdShack's principal place of business currently is the same as ours (1531 3rd Avenue North, Suite 110, Birmingham, Alabama 35203).
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, Chesters has the right to sell to non-Chester's food-service operators. Chesters may sell chicken cooking equipment that is similar to the equipment franchisees use in their restaurants to non-Chester's food-service operators directly or through unaffiliated distributors.
Furthermore, an affiliate of Chesters, BirdShack, LLC, sells chicken-related food products under the BirdShack name to non-Chester's food-service operators directly or through unaffiliated distributors. These operators do not have the right to use any of Chesters' trademarks, and they sell chicken products under their own trade names or brands or under the BirdShack name. These operators sell their chicken products from their own physical premises, but they might engage in some off-premises advertising that competes with a Chesters franchisee's advertising.
Chesters states that they do not anticipate any material conflicts between Chesters Restaurant franchises and these other food-service operators in terms of customers and support, although they will use reasonable efforts to resolve any conflicts that do arise. This is a potential risk for franchisees as Chesters does not guarantee that conflicts will not arise, only that they do not anticipate them and will attempt to resolve them.