What does the Chesters franchise agreement state regarding the execution of a document reflecting adjustments to the financed amount?
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 (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's 2025 Franchise Disclosure Document, the franchise agreement addresses adjustments to the financed amount. The Financed Amount is based on the Estimated Cost, which includes the total estimated cost of the collateral and financed soft costs, adjusted for any non-reimbursed down payments. This Estimated Cost is provided by the franchisee and/or the Supplier.
If the Actual Cost, which is the final actual cost of the collateral and any financed Soft Costs, differs from the Estimated Cost, Chesters is authorized to adjust the Financed Amount to reflect the Actual Cost. Furthermore, the agreement stipulates that if Chesters requests, the franchisee must execute a document reflecting these adjustments.
Chesters will provide evidence of the cost changes that necessitate such adjustments if the franchisee requests it. This ensures transparency and provides the franchisee with documentation supporting the adjustments made to the financed amount. This clause protects both Chesters and the franchisee by ensuring that the financed amount accurately reflects the actual costs incurred.