According to the Chesters EFA, what is the condition for subsequent Payments to be due?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
y due date specified by us (the "First Due Date"). The interest rate stated above excludes this pro-rated payment and all fees. The pro-rated payment is due on the First Due Date, and the first Payment is due either in advance, on the First Due Date, or on the second Due Date, as specified by us. Subsequent Payments are due on the same day of each month thereafter (the period from the Commencement Date until full payment of your obligations, the "Term"). All payments are due whether or not we invoice you.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters' 2025 Franchise Disclosure Document, subsequent payments under the Equipment Finance Agreement (EFA) are due on the same day of each month after the commencement date until all obligations are fulfilled. The commencement date refers to the initial funding date of the loan.
Chesters specifies that all payments are due regardless of whether an invoice is sent. Furthermore, Chesters is authorized to adjust the payment amount to maintain the same interest rate if the financed amount changes. This means a franchisee should be prepared for consistent monthly payments aligned with the loan terms, but also be aware that these payments could fluctuate if the underlying financed amount is adjusted.
It is important to note that the franchisee's obligation to make payments and pay other amounts due under the EFA is absolute and unconditional, and not subject to any reduction or set-off for any reason. This highlights the binding nature of the agreement and the franchisee's responsibility to meet their financial obligations, irrespective of any disputes or issues that may arise. The EFA is also described as a non-cancelable agreement, reinforcing the franchisee's commitment to the payment schedule and terms outlined in the document.