factual

What is the purpose of Exhibit F regarding the Chesters franchise?

Chesters Franchise · 2025 FDD

Answer from 2025 FDD Document

EXHIBIT F

STATE ADDENDA AND AGREEMENT RIDERS

NO WAIVER OR DISCLAIMER OF RELIANCE IN CERTAIN STATES

The following provision applies only to franchisees and franchises that are subject to the state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:

No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.

Source: Item 22 — **CONTRACTS (FDD page 48)

What This Means (2025 FDD)

According to Chesters's 2025 Franchise Disclosure Document, Exhibit F contains state addenda and agreement riders. This exhibit is important because it addresses specific legal requirements or modifications to the standard franchise agreement that are necessary for compliance with state franchise laws. These addenda can vary significantly from state to state, reflecting differences in franchise regulations.

For prospective Chesters franchisees, Exhibit F serves as a critical resource to understand their rights and obligations under the franchise agreement within their specific state. The exhibit includes a provision that applies to franchisees in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. This provision states that no statement, questionnaire, or acknowledgement signed by the franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Chesters or its representatives.

This "no waiver" clause is particularly significant as it protects franchisees from inadvertently relinquishing their legal rights or being bound by disclaimers that could limit their ability to pursue legal action against Chesters if they believe they have been misled or defrauded. By including these state-specific addenda, Chesters ensures that its franchise agreements comply with local regulations and that franchisees are aware of their rights and protections under state law. Franchisees should carefully review Exhibit F to understand how their franchise agreement is modified or supplemented by the laws of their state.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.