Which states with franchise laws require Chesters' Franchise Disclosure Document to be registered or filed, or be exempt from registration?

According to Chesters' 2025 Franchise Disclosure Document, certain states have franchise laws that mandate the registration or filing of the Franchise Disclosure Document (FDD), or require an exemption from registration. As of the effective date of the document, these states are California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.

This registration or filing requirement means that Chesters has taken specific steps to comply with franchise laws in these states before offering franchises. These steps often include submitting the FDD and related documents to state regulatory agencies for review and approval. The state may examine the FDD to ensure it meets the legal requirements and provides potential franchisees with adequate information to make an informed decision.

For a prospective Chesters franchisee, this information is crucial because it confirms that Chesters is operating legally within these states and has met the necessary regulatory requirements. It also suggests that the franchisee may have certain rights and protections under state franchise laws. The presence of state-specific addenda in the FDD, as seen with California, Illinois, Maryland, Minnesota, New York, Rhode Island, Virginia, and Washington, further emphasizes the importance of understanding the specific regulations in each state where Chesters operates.

It is important for potential franchisees to carefully review the FDD and any state-specific addenda to understand their rights and obligations under the franchise agreement and applicable state laws. Consulting with an attorney experienced in franchise law is advisable to ensure full comprehension of the legal implications.