Are the Ascentium Capital Financing Program Documents for Chesters included as an exhibit to the FDD?

According to Chesters's 2025 Franchise Disclosure Document, the Ascentium Capital Financing Program Documents are included as Exhibit G to the FDD. This means that prospective franchisees can review the actual financing agreements and related documents offered through Ascentium Capital, a third-party lender that Chesters has arranged financing with.

Specifically, Item 10 of the FDD states that a copy of the Ascentium Equipment Finance Agreement (both 1-page and 2-page versions) and related prepayment addendums are attached as Exhibit G. This allows franchisees to examine the terms and conditions of the financing program, including interest rates, repayment schedules, and any associated fees. As of the issuance date of the 2025 FDD, the interest rate on Ascentium loans is approximately 4.99% per annum; however, Ascentium earns an annual interest rate of approximately 8.50% because Ascentium deducts 5% to 10% of the total purchase price for core equipment, signage, fixtures, and supplies from the amount paid to Chesters.

Having these documents as part of the FDD provides transparency and allows potential franchisees to make informed decisions about financing their Chesters franchise. It is important to note that the interest rate available to franchisees on Ascentium loans may vary over time. While Chesters does not receive fees from Ascentium for referring franchisees, the total purchase price paid to Chesters for core equipment, signage, fixtures, and supplies will be approximately 5% to 10% higher than if the franchisee pays cash or finances through a different third party.

Therefore, prospective franchisees should carefully review Exhibit G and compare the terms of the Ascentium Capital financing program with other financing options to determine the most suitable arrangement for their individual circumstances. They should also consider the potential for varying interest rates and the increased cost of purchasing equipment through this financing program.