What acknowledgement is made by both parties regarding the terms and conditions on the following page of the Chesters EFA?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
This EFA shall become effective upon Debtor's signature below, provided, however, that our obligation to perform our obligations under this EFA shall be subject to our satisfactory receipt of all conditions specified by us, including a complete and properly executed documentation package, as determined by us. By signing below, Debtor hereby irrevocably authorizes Secured Party to pay the Supplier on behalf of Debtor. The person executing this EFA is authorized to do so, making this EFA valid and binding on Debtor.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the Debtor (franchisee) acknowledges and agrees to the terms and conditions of the Electronic Funds Agreement (EFA) upon signing. Specifically, the EFA becomes effective once the Debtor signs it, signifying their agreement to its terms. However, Chesters's obligation to fulfill its responsibilities under the EFA is contingent upon receiving all required conditions, including a complete and properly executed documentation package.
Chesters also acknowledges its acceptance of the EFA through a subsequent communication signed by the Lender. This indicates that both parties must formally acknowledge and agree to the EFA's terms for it to be fully effective. The agreement can be signed electronically, and copies are considered original except for the one marked as the "sole original" by the Secured Party.
This clause ensures that both Chesters and the franchisee are aware of and agree to the EFA's conditions before it takes effect. It protects Chesters by ensuring they receive all necessary documentation and approvals before being obligated to perform under the agreement. For the franchisee, it confirms that their signature initiates the agreement, but Chesters must also formally accept it.