In which item of the Chesters Franchise Disclosure Document are additional paragraphs added to the end of the chart?

According to Chesters's 2025 Franchise Disclosure Document, for franchisees in California, additional paragraphs are added to the end of the chart in Item 17. These paragraphs relate to specific legal considerations under California law. Specifically, they address franchisees' rights concerning transfer, termination, or nonrenewal, referencing California Business and Professions Code Sections 20000 through 20043. The disclosure also clarifies the enforceability of liquidated damages clauses under California Civil Code Section 1671 and the potential unenforceability of the agreement's choice of Alabama law under California law.

For prospective Chesters franchisees in California, this means that certain provisions in the standard franchise agreement may be superseded by California law. It is important to understand these state-specific protections, especially those concerning termination, transfer, and financial liabilities. The disclosure highlights that even though the franchise agreement might specify Alabama law, California law could take precedence in certain situations, offering additional safeguards to the franchisee.

Additionally, for franchisees in Illinois, statements are added to the end of Item 17. This indicates that Item 17 is a crucial section for understanding the legal framework and potential modifications to the standard franchise agreement based on the franchisee's location. Franchisees should carefully review Item 17 in conjunction with any state-specific addenda to fully understand their rights and obligations.