Does each payment under the Chesters EFA include interest?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties agree that each Payment includes interest.
In some cases, we may receive a discount from Supplier to reduce your interest rate below what we would otherwise charge.
Any such discount reduces your Payments due to a lower interest rate but does not reduce the Financed Amount.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, each payment under the Equipment Finance Agreement (EFA) includes interest. This means that a portion of each payment a franchisee makes will go towards covering the interest on the financed amount.
Chesters may receive a discount from a supplier, which could reduce the franchisee's interest rate below what Chesters would normally charge. This discount would lower the franchisee's payments but would not reduce the financed amount itself.
Prospective franchisees should carefully consider the interest rate and the total amount of interest paid over the term of the EFA, as this will impact the overall cost of financing equipment through Chesters.