Can Chesters use payments received from suppliers for any purpose?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates have the right to receive payments from suppliers on account of their actual or prospective dealings with you and other licensees and to use all amounts we receive without restriction for any purposes we deem appropriate (unless we and our affiliates agree otherwise with the suppliers).
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters' 2025 Franchise Disclosure Document, Chesters and its affiliates have the right to receive payments from suppliers due to their dealings with franchisees. This means that suppliers may provide payments or incentives to Chesters based on the volume or value of purchases made by Chesters franchisees.
Chesters retains the right to use these payments without any restrictions for any purpose they deem appropriate. The only exception to this is if Chesters and the suppliers agree otherwise.
For a prospective franchisee, this arrangement means that Chesters could potentially benefit financially from directing franchisees to specific suppliers, even if those suppliers are not the lowest cost or highest quality options. It is important for franchisees to independently evaluate suppliers and negotiate terms that are favorable to their own business, regardless of any incentives Chesters may receive.