If Chesters provides labels, what are my obligations regarding labeling the collateral?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
If we supply you with labels, you shall label any and all Collateral and shall keep the same affixed in a prominent place.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, if Chesters supplies labels for the collateral, you are required to label any and all collateral and keep the labels affixed in a prominent place.
This means that as a Chesters franchisee, you must ensure that all equipment or assets used as collateral for financing or leasing agreements are properly labeled with the provided labels. These labels must be displayed clearly and remain attached to the collateral throughout the term of the agreement.
Failure to properly label and maintain these labels could potentially lead to issues with inspections or compliance with the financing terms. It is important to follow Chesters's instructions regarding the placement and maintenance of these labels to avoid any complications.