What documentation fee is a Chesters franchisee required to pay to Ascentium for each loan?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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To be eligible for a loan from Ascentium, you must meet the credit requirements of Ascentium. The loan will be secured by the property you are obtaining with the loan proceeds. Ascentium may require as a condition to making any loan that your owners personally guaranty your obligations to Ascentium. You are required to pay Ascentium a $195 documentation fee for each loan. Depending on loan amount and collateral requirements, you also may be required to pay a UCC search fee and/or site inspection
Source: Item 10 — FINANCING (FDD pages 23–24)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, franchisees are required to pay a documentation fee of $195 to Ascentium for each loan. This fee is in addition to other potential costs, such as UCC search fees and site inspection fees, which may be required depending on the loan amount and collateral requirements.
Ascentium offers term loans to Chesters franchisees for financing the purchase of core equipment, signage, fixtures, and supplies needed for their restaurants. The interest rates on these loans are fixed at the time of funding and are influenced by factors such as the loan term, loan amount, credit history, and operating history. While the stated interest rate might be around 4.99% per annum, Ascentium effectively earns approximately 8.50% due to a deduction from the amount paid to Chesters, which increases the total purchase price for the franchisee.
Prospective Chesters franchisees should factor this $195 documentation fee, along with potential UCC search and site inspection fees, into their initial investment calculations when considering financing through Ascentium. It's also important to note that the total purchase price for core equipment, signage, fixtures, and supplies will be approximately 5% to 10% higher when financing through Ascentium compared to paying cash or using a different third-party financing option. Therefore, franchisees should carefully evaluate all financing options to determine the most cost-effective solution for their specific circumstances.