According to the Chesters EFA, who provides the Estimated Cost?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
The Financed Amount is based upon the total estimated cost of the Collateral and financed Soft Costs (adjusted for any non-reimbursed down payments made by you) (the "Estimated Cost"), which Estimated Cost you and/or the Supplier have provided to us.
If the final actual cost of the Collateral and any financed Soft Costs (the "Actual Cost") is different than the Estimated Cost, you authorize us to adjust the Financed Amount to the Actual Cost.
If we request, you agree to execute a document reflecting such adjustments and we will provide you with evidence of our cost changes requiring such adjustments if you request.
You represent and warrant to us that all information conveyed to us in connection with this EFA whether by you, a guarantor, a Supplier or any other person, is true, accurate, complete and not misleading.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters' 2025 Franchise Disclosure Document, the Estimated Cost for the collateral and financed soft costs is provided by the franchisee and/or the supplier. This Estimated Cost is used to determine the Financed Amount of the loan provided to the franchisee.
If the final Actual Cost differs from the Estimated Cost, Chesters is authorized to adjust the Financed Amount accordingly. The franchisee may need to execute a document reflecting these adjustments and can request evidence of the cost changes from Chesters.
The franchisee is responsible for ensuring that all information provided in connection with the EFA, whether by the franchisee, a guarantor, a Supplier, or any other person, is true, accurate, complete, and not misleading. This places the onus on the franchisee to verify the accuracy of cost information provided by suppliers.