What is the purpose of the receipt of disclosure document included in the Chester's International, LLC FDD?
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.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chester's 2025 Franchise Disclosure Document, the receipt of the disclosure document serves as an acknowledgement that the prospective franchisee has received the FDD. Chester's must provide the disclosure document to a potential franchisee at least 14 calendar days before they sign a binding agreement or make a payment to Chesters or its affiliates related to the franchise sale.
In New York, Chester's must provide the disclosure document at the earlier of the first personal meeting or 10 business days before the execution of the franchise agreement or the payment of any consideration. Similarly, Michigan requires that the disclosure document be provided at least 10 business days before the execution of any binding agreement or payment of consideration, whichever comes first.
The receipt confirms that the FDD summarizes key provisions of the franchise agreement and other relevant information. It also serves as a notification to the prospective franchisee that they should carefully read the disclosure document and all related agreements. If Chester's fails to 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, which should be reported to the Federal Trade Commission and the appropriate state agency.