In New York, has any party related to Chesters been convicted of a felony?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided above, the following applies to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- A. No such party has an administrative, criminal, or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
- B. No such party has pending actions other than routine litigation incidental to the business that is significant in the context of the number of franchisees and the size, nature, or financial condition of the franchise system or its business operations. C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the ten years immediately preceding the application for registration,
has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations.
- C.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters' 2025 Franchise Disclosure Document, the disclosure for New York franchisees includes specific stipulations regarding Item 3, which covers litigation. Chesters states that, except as provided above, the following applies to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark.
Specifically, Chesters discloses that no such party has been convicted of a felony or pleaded nolo contendere to a felony charge. Additionally, within the ten years immediately preceding the application for registration, no such party has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations.
This disclosure assures prospective Chesters franchisees in New York that the franchisor and its related parties have a clean legal record regarding felony convictions and certain other legal issues within the specified timeframe. This information is crucial for potential franchisees to assess the integrity and stability of the Chesters franchise system before making a financial investment.