What is Chesters required to do if the secured party requests a document reflecting adjustments to the Financed Amount?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
The Financed Amount is based upon the total estimated cost of the Collateral and financed Soft Costs (adjusted for any non-reimbursed down payments made by you) (the "Estimated Cost"), which Estimated Cost you and/or the Supplier have provided to us.
If the final actual cost of the Collateral and any financed Soft Costs that we pay the Supplier and any taxing authority (the "Actual Cost") is different than the Estimated Cost, you authorize us to adjust the Financed Amount to the Actual Cost.
If we request, you agree to execute a document reflecting such adjustments and we will provide you with evidence of our cost changes requiring such adjustments if you request.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, if the final actual cost of the collateral and any financed soft costs differs from the estimated cost, Chesters is authorized to adjust the financed amount to reflect the actual cost. If Chesters requests that the franchisee execute a document reflecting these adjustments, Chesters will provide evidence of the cost changes that necessitate such adjustments, should the franchisee request it.
This means that as a Chesters franchisee, you may be required to sign a document acknowledging adjustments to the financed amount of your loan if the actual costs of collateral and soft costs differ from the initial estimates. However, you have the right to request and receive evidence from Chesters detailing the cost changes that led to these adjustments. This ensures transparency and allows you to verify the accuracy of the adjusted financed amount.
This clause protects the franchisee by ensuring they are informed about any changes to their financing and have the opportunity to review the supporting documentation. It also protects Chesters by ensuring the franchisee acknowledges and agrees to the adjusted financed amount, preventing potential disputes down the line. Franchisees should carefully review any such adjustments and supporting documentation to ensure they understand the changes and their financial obligations.