Who does a franchise broker represent in the sale of a Chesters franchise?
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' 2025 Franchise Disclosure Document, specifically within the Washington Addendum, a franchise broker represents the franchisor. The FDD states that the franchise broker is compensated by Chesters for connecting potential franchisees with the franchisor and/or for facilitating the sale of the franchise.
This arrangement means that the broker's primary allegiance is to Chesters, not to the prospective franchisee. Therefore, it is crucial for anyone considering a Chesters franchise to independently verify all information provided by the broker and conduct their own thorough due diligence.
Prospective franchisees should carefully evaluate any information provided by a franchise broker about Chesters. Understanding that the broker is paid by Chesters can help franchisees approach the broker's advice with appropriate scrutiny and seek additional, unbiased sources of information before making any investment decisions.