Does Chesters receive any fees from Ascentium for referring franchisees for financing?

According to Chesters's 2025 Franchise Disclosure Document, Chesters does not receive fees from Ascentium for referring franchisees for financing. However, the document states that the total purchase price franchisees pay to Chesters for core equipment, signage, fixtures, and supplies will be approximately 5% to 10% higher than if they pay cash or finance through a different third party.

Ascentium offers term loans to Chesters franchisees to finance the purchase of core equipment, signage, fixtures, and supplies needed for their restaurants. The interest rates on these loans are fixed at the time of funding, based on factors such as the loan term, loan amount, Ascentium's cost of funds, the franchisee's credit history and operating history, and other risk factors. As of the issuance date of the 2025 FDD, the interest rate franchisees will pay on Ascentium loans is approximately 4.99% per annum. However, Ascentium will actually earn an annual interest rate of approximately 8.50% on each loan because Ascentium will deduct an amount equal to approximately 5% to 10% of the total purchase price for the core equipment, signage, fixtures, and supplies from the amount paid to Chesters as part of their agreement with Ascentium to reduce the franchisee's annual interest rate from 8.50% to 4.99%, as adjusted from time to time.

This arrangement means that while Chesters doesn't directly receive a referral fee from Ascentium, the cost of equipment and supplies is higher when financed through Ascentium compared to other payment methods. This difference effectively acts as an indirect benefit to Chesters. Prospective franchisees should consider this increased cost when evaluating financing options and factor it into their overall investment analysis. It is important to compare the total cost of financing through Ascentium, including the higher purchase price, with other financing alternatives to determine the most cost-effective solution.