Does Chesters authorize its employees or representatives to make any financial performance representations orally?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting Franchise Services, 1531 3rd Avenue North, Suite 110, Birmingham, Alabama 35203, (800) 646-9403, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD page 38)
What This Means (2025 FDD)
According to Chesters' 2025 Franchise Disclosure Document, Chesters does not authorize its employees or representatives to make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets, either orally or in writing. However, if a prospective franchisee is purchasing an existing outlet, Chesters may provide the actual records of that outlet.
Chesters advises that if a prospective franchisee receives any other financial performance information or projections of future income, they should report it to the franchisor's management by contacting Franchise Services at the provided address and phone number, as well as the Federal Trade Commission and the appropriate state regulatory agencies. This is to ensure that any unauthorized claims can be addressed and to protect potential franchisees from misleading information.
This policy is typical in franchising, as franchisors want to control the information being disseminated to potential franchisees and ensure its accuracy. By disallowing unauthorized financial performance representations, Chesters aims to maintain transparency and avoid potential legal issues that could arise from inaccurate or misleading claims. It is important for prospective franchisees to rely solely on the information provided in the FDD and any official documents provided by Chesters during the due diligence process.