According to the Chesters EFA, what is the First Due Date?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
Payments: You agree to pay us: (a) the number of payments in the amount(s) shown above (each a "Payment") plus (b) a pro-rated payment equal to 1/30th of a standard Payment times the number of days from the funding date of the loan (the "Commencement Date") to the first monthly 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 and performance of your obligations, the "Term").
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the "First Due Date" in the Equipment Financing Agreement (EFA) refers to the initial monthly due date for payments, as specified by Chesters. The franchisee is also responsible for a pro-rated payment covering the period from the loan's commencement date to this first monthly due date. This pro-rated payment, calculated as 1/30th of a standard payment times the number of days in that initial period, is due on the First Due Date.
The first full payment is due either in advance, on the First Due Date, or on the second due date, as determined by Chesters. Subsequent payments then follow on the same day of each month throughout the term of the agreement. It's important to note that the stated interest rate excludes the pro-rated payment and all fees, so franchisees should factor those additional costs into their financial planning.
Chesters retains the authority to adjust the payment amount if the financed amount changes, ensuring the interest rate remains consistent. All payments are due regardless of whether an invoice is issued. Understanding these payment terms and associated fees is crucial for prospective franchisees to manage their cash flow effectively and avoid potential late charges or other penalties.