When does the term loan note mature for Chesters, and what collateral secures it?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Term loan – interest is payable at 7.25%. | ||
|---|---|---|
| The note matures in December 2028, collateralized | ||
| by certain business assets | $ 718,235 | $ 1,084,858 |
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, the term loan note matures in December 2028. The loan is collateralized by certain business assets. The interest on the term loan is payable at a rate of 7.25%.
This information is relevant to prospective Chesters franchisees as it outlines the terms of a potential loan they might obtain to finance their franchise. Understanding the maturity date and the nature of the collateral is crucial for financial planning and risk assessment. Franchisees should evaluate their ability to repay the loan by December 2028 and assess the value and risk associated with using their business assets as collateral.
It is important for potential franchisees to fully understand the implications of using business assets as collateral. If the franchisee defaults on the loan, Chesters could seize those assets, potentially disrupting or even terminating the franchise operation. Therefore, franchisees should carefully consider their financial situation and ability to manage debt before entering into such an agreement.