If Chesters receives a discount from the supplier, does it reduce the financed amount?

According to Chesters' 2025 Franchise Disclosure Document, if Chesters receives a discount from a supplier, this discount will not reduce the financed amount. However, the discount may reduce the interest rate charged to the franchisee, which in turn lowers the payment amount.

This means that while the total amount financed remains the same, the franchisee benefits from a lower interest rate, resulting in smaller, more manageable payments over the loan term. This arrangement can be advantageous for franchisees as it reduces their monthly financial burden without affecting the principal amount they owe.

It is important for prospective Chesters franchisees to understand that the financed amount is based on the estimated cost of collateral and soft costs, and any adjustments are made based on the actual cost. While supplier discounts do not directly decrease the financed amount, they can lead to more favorable payment terms through a reduced interest rate. Franchisees should confirm the specifics of any potential discounts and their impact on the interest rate and payment amounts before finalizing their financing agreement.