What representation and warranty does a Chesters franchisee make regarding information conveyed in connection with the equipment finance agreement?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
We authorize the respective state agents identified on Exhibit A to receive service of process for us in the particular states. I received a disclosure document from Chester's International, LLC dated as of April 18, 2025, that included the following Exhibits:
- A. List of State Agencies/Agents for Service of Process
- B. CHESTER'S Restaurant Agreement
- C. Tables of Contents of Manuals
- D. Financial Statements
- E. List of CHESTER'S Restaurant Franchisees/List of Franchisees Leaving System During Past Year
- F. State Addenda and Agreement Riders
- G. Ascentium Capital Financing Program Documents
- H. Receipts of Disclosure Document
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
Based on the 2025 Chesters Franchise Disclosure Document, the excerpt provided does not contain information regarding the specific representations and warranties a franchisee makes concerning information conveyed in connection with the equipment finance agreement. The document does reference an Ascentium Capital Financing Program in Exhibit G, suggesting that financing options are available to franchisees.
However, the details of what a franchisee warrants or represents in that context are not detailed in this section. The FDD does mention that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under state franchise law or disclaim reliance on statements made by Chesters. This may offer some protection to franchisees, but it does not specify the representations required for equipment financing.
To fully understand the obligations, a prospective Chesters franchisee should carefully review Exhibit G and the specific terms of the Ascentium Capital Financing Program. They should also consult with a legal and financial advisor to fully understand the implications of any representations and warranties they would be making when entering into an equipment finance agreement. It would be prudent to ask Chesters directly for clarification on this matter.