What happens if the Chesters franchisee makes a non-reimbursed down payment?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
This disclosure document summarizes certain provisions of the Agreement and other information in plain language. Read this disclosure document and all agreements carefully. If Chester's International, LLC offers you a franchise, it must provide this disclosure document to you 14 calendar-days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
New York requires that we give you this disclosure document at the earlier of the first personal meeting or 10 business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. Michigan requires that we give you this disclosure document at least 10 business days before the execution of any binding franchise or other agreement or the payment of any consideration, whichever occurs first.
If Chester's International, LLC does not deliver this disclosure document on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and the appropriate state agency identified on Exhibit A.
The franchisor is Chester's International, LLC, currently located at 1531 3rd Avenue North, Suite 110, Birmingham, Alabama 35203. Its telephone number is (800) 646-9403.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, if Chesters International, LLC offers a franchise, it must provide the disclosure document to the prospective franchisee 14 calendar days before they sign a binding agreement or make a payment to Chesters or an affiliate related to the franchise sale. This is a crucial protection for franchisees, ensuring they have adequate time to review the FDD and seek professional advice before committing financially. New York and Michigan have their own specific timelines for disclosure. New York requires the disclosure document at the earlier of the first personal meeting or 10 business days before the execution of the franchise agreement or payment of any consideration. Michigan mandates at least 10 business days before signing any binding agreement or making any payment, whichever comes first.
If Chesters does not deliver the disclosure document on time, or if the document contains false, misleading, or omits material information, it may constitute a violation of federal and state laws. In such cases, the franchisee can report this to the Federal Trade Commission (FTC) in Washington, D.C., and the appropriate state agency. This provision aims to hold Chesters accountable for providing accurate and timely information, allowing franchisees to make informed decisions. The FDD lists Chester's International, LLC's address as 1531 3rd Avenue North, Suite 110, Birmingham, Alabama 35203, and their phone number as (800) 646-9403.
In practical terms, this means a prospective Chesters franchisee should ensure they receive the FDD at least 14 days before making any payment or signing any agreement. They should carefully review the document for any discrepancies or omissions and consult with an attorney or financial advisor if needed. If the franchisee believes there has been a violation of disclosure laws, they should report it to the FTC and the relevant state agency to protect their rights and interests. This thorough process helps mitigate risks and ensures a transparent franchise purchasing experience.