What is the timeframe Chester's International, LLC must provide the disclosure document to a prospective franchisee before signing a binding agreement or making a payment?
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, Chester's International, LLC must provide the disclosure document to a prospective franchisee 14 calendar days before they sign a binding agreement or make a payment to Chesters or an affiliate related to the franchise sale. This federal requirement ensures that potential franchisees have sufficient time to review the FDD and make an informed decision.
However, the disclosure document also notes that New York has a different requirement. In New York, Chesters 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 related to the franchise relationship. Michigan also has a different requirement, mandating that Chesters provide the disclosure document at least 10 business days before the execution of any binding agreement or the payment of any consideration, whichever occurs first.
It is important for prospective franchisees to be aware of these varying state-specific regulations, as they may provide additional time or protections beyond the standard federal requirement. If Chester's fails to deliver the disclosure document on time, or if the document contains false, misleading, or omits material information, it could be a violation of federal and state law. This should be reported to the Federal Trade Commission and the appropriate state agency.