What is the collateral for the equipment finance agreement for the Chesters North Pole Coffee Express?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
COLLATERAL: Items of equipment, inventory and personal property related thereto as generally described herein which Lender and Debtor agree that a more detailed description of the property being financed shall be maintained by us among our books and records in whatever more detailed description of the property financed is received from the supplier of such property (the "Supplier") and, absent manifest error, such detailed description shall be considered incorporated into this Equipment Finance Agreement ("EFA") and shall be provided to Debtor promptly upon request.
Personal Property Description: Flatbed Truck with sleigh clamps, Snow Plow with 20 ft blade
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the collateral for the equipment finance agreement for the North Pole Coffee Express includes items of equipment, inventory, and personal property related to the business. While the agreement specifies that a more detailed description of the financed property will be maintained in the lender's records based on information received from the supplier, the agreement does provide a general description.
Specifically, the personal property listed as collateral consists of a Flatbed Truck with sleigh clamps and a Snow Plow with a 20 ft blade. This indicates that the loan is secured by these particular assets, meaning that if the franchisee defaults on the loan, the lender, Regions Bank d/b/a Ascentium Capital, has the right to seize these items to recover the outstanding debt.
It is important for the franchisee to understand that the lender will maintain a more detailed description of the collateral, which will be considered part of the Equipment Finance Agreement. The franchisee has the right to request this detailed description from the lender to ensure clarity and accuracy regarding the specific items securing the loan. This is a fairly standard practice in equipment financing agreements, where the lender takes a security interest in the financed assets.