When is the first Payment due under the Chesters EFA?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
Payments.
You agree to pay us: (a) the number of payments in the amount(s) shown above (each a "Payment") plus (b) a pro-rated payment equal to 1/30th of a standard Payment times the number of days from the first funding date of the loan (the "Commencement Date") to the first monthly due date specified by us (the "First Due Date").
The interest rate stated above excludes this pro-rated payment and all fees.
The pro-rated payment is due on the First Due Date, and the first Payment is due either in advance, on the First Due Date, or on the second Due Date, as specified by us.
Subsequent Payments are due on the same day of each month thereafter (the period from the Commencement Date until full payment of your obligations, the "Term").
All payments are due whether or not we invoice you.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the timing of the first payment under the Equipment Finance Agreement (EFA) depends on the terms specified by Chesters. In addition to the standard payments, a pro-rated payment is required, calculated from the loan's funding date to the first monthly due date. This pro-rated payment, equivalent to 1/30th of a standard payment multiplied by the number of days between the funding date and the first due date, is due on the 'First Due Date'.
The first full payment is due either in advance, on the 'First Due Date', or on the second due date, as determined by Chesters. Subsequent payments are then due on the same day of each month throughout the term of the agreement. It is important to note that all payments are due regardless of whether an invoice is received.
Prospective Chesters franchisees should carefully review the EFA to understand the specific due dates and amounts, including the pro-rated payment. Franchisees should also be aware that Chesters is authorized to adjust the payment amount if the financed amount changes, in order to maintain the same interest rate. Understanding these payment terms is crucial for managing cash flow and meeting financial obligations under the franchise agreement.