If Ascentium accelerates the loan due to default, how is the remaining balance calculated for Chesters franchisees?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
nt.
If you default, Ascentium may, at its election, accelerate and require that you pay all accrued and unpaid amounts outstanding, and all of the remaining payments due under the financing agreement (discounted to present value at the higher of 3% per annum or the lowest rate allowed by law). Ascentium can also take possession of the collateral, sell it and apply the proceeds against what you owe Ascentium after deducting any costs it incurs. You must also pay Ascentium's costs and expenses, including reasonable attorneys' fees, to enforce the financing agreement. If you make a payment late you must pay Ascentium a late charge of 10% of the payment amount (not to exceed the highest rate allowed by applicable law). Ascentium may charge you a return check or return ACH charge of $30 for any payment which is returned by your bank for any reason (not to exceed the maximum amount permitted by l
Source: Item 10 — FINANCING (FDD pages 23–24)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, if a franchisee defaults on their Ascentium loan, Ascentium has the option to accelerate the loan. This means Ascentium can demand immediate payment of all outstanding amounts, including accrued and unpaid amounts, as well as all remaining payments due under the financing agreement. The remaining payments will be discounted to present value, using the higher of either a 3% per annum discount rate or the lowest rate allowed by law.
In addition to the accelerated payment, Ascentium can take possession of the collateral used to secure the loan, sell it, and apply the proceeds to the outstanding debt after deducting any costs incurred during the process. The franchisee is also responsible for covering Ascentium's costs and expenses related to enforcing the financing agreement, including reasonable attorney's fees.
Furthermore, Chesters franchisees should be aware that late payments incur a charge of 10% of the payment amount, not exceeding the highest rate permitted by law. There is also a $30 charge for any returned check or return ACH payment due to any reason, again not exceeding the maximum amount permitted by law. These terms highlight the importance of maintaining timely payments and understanding the financial obligations associated with the Ascentium loan.