What is amended in Item 3 of the Chesters Franchise Disclosure Document for California franchisees?

According to Chesters's 2025 Franchise Disclosure Document, Item 3 is amended for California franchisees to include a statement regarding orders from national securities associations or exchanges. Specifically, the amendment confirms that neither Chesters, nor any person listed in Item 2 of the Franchise Disclosure Document, is subject to any currently effective order from a national securities association or exchange that would suspend or expel them from membership. This relates to the Securities Exchange Act of 1934.

This amendment provides additional assurance to potential franchisees in California. It confirms that Chesters and its key personnel are in good standing with national securities associations or exchanges. This information is relevant because any past or present disciplinary actions related to securities could indicate potential risks or integrity concerns.

Prospective franchisees should understand the implications of this amendment within the broader context of Item 3, which typically covers litigation history. While this amendment addresses securities-related orders, it's essential to review the complete Item 3 to assess any other legal or regulatory issues involving Chesters or its key personnel. This due diligence can help franchisees make informed decisions about their investment.