What is the advice given to Chesters franchisees working with a franchise broker?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
Advisory Regarding Franchise Brokers.
Under the Washington Franchise Investment Protection Act, a "franchise broker" is defined as a person that engages in the business of the offer or sale of franchises.
A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise.
If a franchisee is working with a franchise broker, franchisees are advised to carefully evaluate any information provided by the franchise broker about a franchise.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, if a prospective franchisee is working with a franchise broker, they are advised to carefully evaluate any information provided by the franchise broker about the Chesters franchise. The FDD also clarifies that a franchise broker represents the franchisor and is compensated for referring prospects or selling the franchise. This disclosure is particularly relevant in Washington state due to the Washington Franchise Investment Protection Act.
This advice is crucial because franchise brokers, while potentially helpful in navigating the franchise landscape, have a vested interest in promoting the franchisor they represent. Their primary goal is to facilitate franchise sales, which means they may not always present a completely unbiased view of the opportunity. Franchisees need to conduct their own due diligence and verify any claims made by the broker.
Prospective Chesters franchisees should independently research the brand, review the FDD thoroughly, and seek advice from legal and financial professionals. They should also speak with existing Chesters franchisees to gain firsthand insights into the realities of operating a franchise. By taking these steps, franchisees can make informed decisions and avoid potential pitfalls associated with relying solely on information from a franchise broker.