Can Chesters sell or assign the EFA without my consent?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
We may sell, transfer, assign or encumber this EFA, in whole or in part, without notice to you or your consent.
You agree that if we sell, transfer, assign or encumber this EFA, the assignee will have the rights and benefits that we assign to the assignee and will not have to perform any of our obligations.
You agree that the rights of the assignee will not be subject to any claims, defenses or set-offs that you may have against us.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters' 2025 Franchise Disclosure Document, Chesters has the right to sell, transfer, assign, or encumber the EFA (Equipment Finance Agreement), in whole or in part, without providing notice to you or obtaining your consent. This means that Chesters can transfer their rights and obligations under the EFA to another party without needing your approval or even informing you beforehand.
Furthermore, if Chesters assigns the EFA, the assignee will inherit all the rights and benefits that Chesters originally held under the agreement. The assignee is not required to perform any of Chesters' obligations. This could potentially change the party to whom you make payments or with whom you interact regarding the equipment financing.
Additionally, the rights of the assignee will not be subject to any claims, defenses, or set-offs that you may have against Chesters. This means that if you have any disputes or claims against Chesters, you cannot use those as a defense against the assignee's rights under the EFA. As a franchisee, it is important to understand this clause, as it could impact your rights and obligations concerning the financing of equipment for your Chesters franchise.