Under what conditions may Ascentium require a personal guaranty from the owners of a Chesters franchise?

According to Chesters's 2025 Franchise Disclosure Document, Ascentium may require a personal guaranty from the owners of the franchise as a condition of providing a loan. This means that the owners of the Chesters franchise may have to personally guarantee the obligations of the business to Ascentium.

In practice, this personal guarantee means that if the Chesters franchise fails to meet its loan obligations to Ascentium, Ascentium can seek repayment from the personal assets of the franchise owners. This is a common practice in small business lending, as it provides the lender with additional security beyond the assets of the business itself.

Prospective Chesters franchisees should carefully consider the implications of providing a personal guarantee, as it puts their personal assets at risk. They should also review the terms of the Ascentium loan agreement and any related guaranty documents to fully understand their obligations and potential liabilities.