Where in the Chesters Franchise Disclosure Document can I find additional paragraphs added to the chart?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
fective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et seq., suspending or expelling such persons from membership in that association or exchange.
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- The following paragraphs are added at the end of the chart in Item 17 of the Franchise Disclosure Document:
California Business and Professions Code Sections 20000 through 20043 provide rights to franchisees concerning transfer, termination or nonrenewal of a franchise. If the Agreement contains a provision that is inconsistent with the law, the law will control.
The Franchise Agreement contains a liquidated damages clause. Under California Civil Code Section 1671, certain liquidated damages clauses are unenforceable.
The Agreement requires application of the laws of the State of Alabama. This provision might not be enforceable under California law.
- There are no bankruptcy or release provisions in our franchise documents.
ILLINOIS
- The following statements are added to the end of Item 17:
Except for federal law, Illinois law governs the Franchise Agreement.
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, additional paragraphs added to the chart in Item 17 can be found in the addendum for California and Minnesota. For California, paragraph 6 of the addendum states that certain clauses are added at the end of the chart in Item 17, referencing California Business and Professions Code Sections 20000 through 20043, California Civil Code Section 1671, and the laws of the State of Alabama. For Minnesota, paragraph 1 of the addendum states that additional paragraphs are added at the end of the chart in Item 17, referencing Minn. Stat. § 80C.21 and Minn. Rule Part 2860.4400J.
These additions address specific legal considerations within California and Minnesota, particularly concerning franchisee rights, choice of law, and enforceability of certain agreement provisions. For example, the California addendum clarifies that if any provision in the Franchise Agreement is inconsistent with California law, the law will take precedence. Similarly, the Minnesota addendum notes prohibitions against requiring litigation outside Minnesota or waivers of jury trials, ensuring franchisees retain their statutory rights.
Prospective franchisees should carefully review these state-specific addenda to understand how local laws may modify or supersede the standard franchise agreement. This is especially important for franchisees operating in California and Minnesota, as these additions directly impact their rights and obligations. Understanding these nuances can help franchisees ensure compliance and protect their interests under state law.
It is also important to note that the document includes addenda for other states, such as Illinois, Maryland, New York, Rhode Island, Virginia, and Washington, which may contain amendments or additional information relevant to franchisees in those states. These addenda often address specific legal requirements or clarifications related to the franchise agreement and should be reviewed carefully by prospective franchisees.