What is Chesters' responsibility regarding invoices for payments due under the EFA?

According to Chesters's 2025 Franchise Disclosure Document, franchisees are responsible for making all payments due under the EFA (Equipment Finance Agreement) regardless of whether or not they receive an invoice from Chesters. This means that the franchisee's obligation to pay is absolute and unconditional.

Chesters may adjust the payment amount to maintain the same interest rate if the financed amount changes. If the final actual cost of collateral and financed soft costs differs from the estimated cost, Chesters is authorized to adjust the financed amount to reflect the actual cost. If requested by Chesters, the franchisee must execute a document reflecting these adjustments, and Chesters will provide evidence of the cost changes if the franchisee asks for it.

This arrangement places the onus on the franchisee to ensure timely payments, irrespective of receiving an invoice. Franchisees must stay informed about their payment schedules and any potential adjustments to avoid late fees or other penalties. It is advisable for prospective Chesters franchisees to maintain clear communication with Chesters regarding payment amounts and due dates to prevent any misunderstandings or oversights.