Can Chesters sell packaging and other paper materials to unaffiliated third-party distributors for resale to franchisees?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
Besides our franchising activities described in Item 1 and above, we currently sell to our franchisees—either directly or indirectly through unaffiliated third-party distributors and grocery wholesalers who then resell to franchisees—various consumable products (manufactured for us by a third party), including the blended products (breading, batter dip, and marinades) used to prepare chicken sold under the Marks. We also sell packaging and other paper materials used by franchisees and sell them to unaffiliated third-party distributors and grocery wholesalers for resale to franchisees.
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 packaging and other paper materials to unaffiliated third-party distributors for resale to franchisees. This means that franchisees may obtain these materials not only directly from Chesters but also through these third-party distributors.
This arrangement provides Chesters franchisees with multiple sourcing options for essential supplies. By using third-party distributors, Chesters can extend its reach and ensure that franchisees have convenient access to the necessary packaging and paper materials. This can be particularly beneficial for franchisees located in areas that are geographically distant from Chesters's primary distribution centers.
However, franchisees should confirm pricing and supply terms from both Chesters and the third-party distributors to ensure they are receiving competitive rates and reliable service. While this arrangement offers flexibility, it also places the onus on the franchisee to manage their supply chain effectively by comparing options and making informed purchasing decisions.