Does Chesters guarantee a franchisee's note, lease, or other obligation?

According to Chesters's 2025 Franchise Disclosure Document, Chesters does not guarantee a franchisee's note, lease, or other obligations. The FDD states clearly that Chesters "do not guarantee your note, lease or obligation." This means that franchisees are solely responsible for fulfilling the financial commitments they make when securing financing or leases for their Chesters franchise.

Chesters does facilitate a third-party financing option through Ascentium Capital for the purchase of core equipment, signage, fixtures, and supplies. While Chesters does not guarantee these loans, Ascentium may require the franchisee's owners to personally guarantee the obligations to Ascentium. This is a common practice in franchising, where lenders seek additional security from the individuals who own and operate the franchise.

It is important for prospective Chesters franchisees to understand the terms and conditions of any financing they obtain, including the possibility of personal guarantees. Franchisees should carefully review the Ascentium Equipment Finance Agreement and related prepayment addendums, which are attached as Exhibit G to the FDD. Understanding the loan terms, interest rates, and potential default scenarios is crucial for managing the financial risks associated with opening a Chesters franchise.