What is the Chesters franchisee required to do 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, 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 it, the franchisee must agree to execute a document that reflects these adjustments. Chesters will provide evidence of the cost changes that necessitate these adjustments if the franchisee requests it.
This clause protects Chesters in the event that the initial cost estimates for setting up the franchise are inaccurate. It ensures that the franchisee is ultimately responsible for the actual costs incurred. The franchisee has the right to request evidence of these cost changes, providing a degree of transparency and accountability.
For a prospective Chesters franchisee, this means being prepared to potentially adjust the financing amount based on the final costs. It's crucial to carefully review any documentation provided by Chesters regarding cost changes and to understand the reasons for any adjustments. Franchisees should maintain open communication with Chesters to address any concerns or discrepancies related to the financed amount.