Are there any state-specific riders included in the Chesters franchise agreement?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Specifically, a provision applies to franchisees subject to franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin.
This provision ensures that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise law, including fraud in the inducement. It also prevents disclaimers of reliance on statements made by Chesters or anyone acting on their behalf. This clause overrides any conflicting terms in other documents related to the franchise agreement.
For a prospective Chesters franchisee, this means that if their franchise is located in one of the listed states, they retain their rights under state franchise laws and can rely on statements made by Chesters during the franchise sales process. This protection is significant because it prevents franchisees from inadvertently waiving legal rights or being bound by disclaimers that could limit their ability to pursue claims against the franchisor.