Where can Chesters franchisees find a copy of the Ascentium Equipment Finance Agreement?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
We have arranged for third-party Ascentium (defined in Item 5) to offer term loans to our franchisees to finance your purchase of certain core equipment, signage, fixtures, and supplies you will need for your Restaurant. A copy of the Ascentium Equipment Finance Agreement (1 page and 2 page versions) and the related prepayment addendums, currently used by Ascentium are attached to this disclosure document as Exhibit G. Key terms of the current Ascentium Equipment Finance Agreement are detailed below.
Franchisees will pay fixed monthly payments of principal and interest accruing on the loan. Interest rates will be fixed at the time the loan is funded based on factors including length of term, loan amount, Ascentium's cost of funds, your credit history and operating history, and other relevant risk factors. These factors will also be considered in setting your monthly loan payment amount. As of the issuance date of this disclosure document, the rate of interest you will pay on each loan from Ascentium is approximately 4.99% per annum, but Ascentium will actually earn an annual interest rate of approximately 8.50% on each loan because Ascentium will deduct an amount equal to approximately 5% to 10% of the total purchase price for the core equipment, signage, fixtures, and supplies from the amount paid to us as part of our agreement with Ascentium to reduce your annual interest rate from 8.50% to 4.99%, as adjusted from time to time. The interest rate available to franchisees on Ascentium loans may vary over time. We do not receive any fees from Ascentium for referring our franchisees to Ascentium for financing, but as noted above and in Item 10 the total purchase price you pay to us for the core equipment, signage, fixtures, and supplies will be approximately 5% to 10% higher than if you pay us cash or finance through a different third party.
Source: Item 10 — FINANCING (FDD pages 23–24)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, a copy of the Ascentium Equipment Finance Agreement can be found as Exhibit G attached to the disclosure document. The agreement includes both a 1-page and a 2-page version, along with related prepayment addendums currently used by Ascentium Capital. This agreement outlines the terms for franchisees who choose to finance their purchase of core equipment, signage, fixtures, and supplies through Ascentium.
Chesters has arranged for Ascentium Capital to offer term loans to franchisees for financing essential restaurant items. The key terms of the Ascentium Equipment Finance Agreement are detailed within the FDD. These loans involve fixed monthly payments covering both principal and interest, with interest rates determined at the time the loan is funded. Factors influencing the interest rates include the loan term, loan amount, Ascentium's cost of funds, the franchisee's credit history and operating history, and other risk factors.
As of the issuance date of the 2025 FDD, the interest rate on Ascentium loans is approximately 4.99% per annum. However, Ascentium earns an actual annual interest rate of about 8.50% because they deduct 5% to 10% of the total purchase price for the core equipment, signage, fixtures, and supplies from the amount paid to Chesters. This arrangement between Ascentium and Chesters effectively reduces the franchisee's annual interest rate from 8.50% to 4.99%, subject to adjustments over time. While Chesters does not receive fees from Ascentium for referring franchisees, the total purchase price paid to Chesters for the equipment is 5% to 10% higher than if the franchisee pays cash or finances through another third party. Franchisees should carefully review Exhibit G to fully understand the terms and conditions of the Ascentium Equipment Finance Agreement and consider all financing options available to them.