Is Chesters making any representations about the past financial performance of company-owned or franchised outlets?
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's 2025 Franchise Disclosure Document, Chesters does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. Chesters also does not authorize its employees or representatives to make any such representations either orally or in writing.
However, if a prospective franchisee is purchasing an existing outlet, Chesters may provide the actual records of that outlet. The FDD advises that if a prospective franchisee receives any other financial performance information or projections of future income, they should report it to Chesters's management, the Federal Trade Commission, and the appropriate state regulatory agencies.
This is a common practice in franchising, as franchisors often avoid making guarantees about financial performance due to the many factors that can influence a franchisee's success. It is the responsibility of the prospective franchisee to conduct their own due diligence and assess the potential profitability of a Chesters franchise based on their individual circumstances and market conditions.