Does Chesters receive direct payments or fees from franchisees related to the Ascentium Capital financing program for core equipment, signage, fixtures, and supplies?

According to Chesters's 2025 Franchise Disclosure Document, franchisees do not directly pay fees to Chesters for financing obtained through Ascentium Capital for core equipment, signage, fixtures, and supplies. However, Chesters benefits from this arrangement. While Chesters does not receive direct fees from Ascentium for referring franchisees, the total purchase price franchisees pay to Chesters for the specified items will be approximately 5% to 10% higher if they finance through Ascentium compared to paying cash or using a different financing source.

Ascentium deducts an amount equal to approximately 5% to 10% of the total purchase price from their payment to Chesters. This deduction is part of an agreement to reduce the franchisee's annual interest rate from approximately 8.50% to 4.99%, as adjusted from time to time. This means that while the franchisee gets a lower interest rate, Chesters effectively receives a higher price for the equipment when the franchisee uses Ascentium financing.

In essence, Chesters benefits financially from the Ascentium financing program because the purchase price for core equipment, signage, fixtures, and supplies is higher when franchisees use Ascentium financing. This increased cost is passed on to the franchisee to offset the reduced interest rate provided by Ascentium. Prospective franchisees should consider this when evaluating financing options and factor in the increased cost of equipment when using Ascentium.