What is the Chesters franchisee's obligation regarding the execution of documents reflecting adjustments to the financed amount?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
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's 2025 Franchise Disclosure Document, if the 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. Chesters will provide evidence of the cost changes that necessitate these adjustments if the franchisee requests it.
This means that as a Chesters franchisee, you are obligated to sign documents that reflect any changes to the amount financed for your equipment and initial setup costs. These adjustments occur if the final, actual costs are different from what was initially estimated. This could happen due to unforeseen expenses or changes in the prices of equipment or services.
It is important for a prospective Chesters franchisee to carefully review the evidence of cost changes provided by Chesters to ensure they are accurate and justified. Understanding the reasons behind these adjustments will help you manage your finances and avoid any surprises during the initial phase of setting up your franchise. Furthermore, franchisees should maintain thorough records of all costs and payments to reconcile them with any adjustments made to the financed amount.