What happens if the Chesters franchisee requests evidence of cost changes requiring 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 Financed Amount is based on the total estimated cost of the collateral and financed soft costs. These costs are adjusted for any non-reimbursed down payments made by the franchisee. If the final actual cost 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. Importantly, Chesters will provide the franchisee with evidence of the cost changes that necessitate such adjustments, but only if the franchisee requests this evidence.
This means that as a prospective Chesters franchisee, you have the right to request and receive documentation supporting any cost adjustments that Chesters makes to your financed amount. This protects you by ensuring transparency and allowing you to verify the accuracy of the costs being financed. It is crucial to maintain thorough records and diligently review any adjustments to the financed amount, requesting supporting documentation from Chesters to ensure all costs are legitimate and justified.