What documentation is Chesters required to provide if the Financed Amount is adjusted?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
The Financed Amount is based upon the total estimated cost of the Collateral and financed Soft Costs (adjusted for any non-reimbursed down payments made by you) (the "Estimated Cost"), which Estimated Cost you and/or the Supplier have provided to us.
If the final actual cost of the Collateral and any financed Soft Costs that we pay the Supplier and any taxing authority (the "Actual Cost") is different than the Estimated Cost, you authorize us to adjust the Financed Amount to the Actual Cost.
If we request, you agree to execute a document reflecting such adjustments and we will provide you with evidence of our cost changes requiring such adjustments if you request.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters' 2025 Franchise Disclosure Document, if the final actual cost of collateral and financed soft costs differs from the estimated cost, Chesters is authorized to adjust the financed amount to reflect the actual cost. If Chesters requests, the franchisee must execute a document reflecting these adjustments. Furthermore, Chesters will provide the franchisee with evidence of the cost changes that necessitate these adjustments, but only if the franchisee requests this documentation.
This means that while Chesters can change the financed amount based on the actual costs incurred, they are only obligated to provide documentation supporting these changes if the franchisee specifically asks for it. It is crucial for a prospective Chesters franchisee to understand this process, as it directly impacts the amount they will be financing and repaying.
For a prospective franchisee, this highlights the importance of carefully reviewing all cost estimates and actual costs, and proactively requesting documentation from Chesters regarding any adjustments to the financed amount. This will ensure transparency and allow the franchisee to verify the accuracy of the adjustments. It would be prudent to maintain thorough records of all costs and communications related to the financing agreement.