What additional fees might Chesters franchisees be required to pay to Ascentium, depending on the loan amount and collateral requirements?

According to Chesters's 2025 Franchise Disclosure Document, franchisees may incur additional fees from Ascentium, depending on the loan amount and collateral needed. In addition to a $195 documentation fee for each loan, franchisees might have to pay a UCC search fee and/or a site inspection fee. These fees are contingent upon the specifics of the loan and the collateral involved.

Furthermore, if a franchisee defaults on their loan, Ascentium has the right to accelerate the loan and demand immediate payment of all outstanding amounts, including remaining payments discounted to present value at a rate of 3% per annum or the lowest rate allowed by law, whichever is higher. Ascentium can also seize and sell the collateral to cover the debt, deducting any associated costs. The franchisee is responsible for covering Ascentium's costs and expenses related to enforcing the financing agreement, including reasonable attorney's fees.

Additional charges may arise from late payments, with a fee of 10% of the payment amount, capped at the highest rate permitted by law. There is also a $30 charge for any returned check or ACH payment. Franchisees are obligated to insure the collateral at their own expense throughout the loan term. Failure to maintain adequate insurance allows Ascentium to obtain insurance on the collateral and charge the franchisee for all associated costs, including administrative fees.

Prospective Chesters franchisees should carefully consider these potential fees and ensure they fully understand the terms and conditions of the Ascentium Equipment Finance Agreement to avoid unexpected costs and financial strain. It is advisable to discuss these fees with both Chesters and Ascentium to gain a clear understanding of the potential financial obligations.