Under the Chesters EFA, what is the condition for Chesters to borrow from the secured party?

Based on the 2025 Chesters Franchise Disclosure Document, the EFA (Equipment Finance Agreement) becomes effective upon the Debtor's (franchisee) signature. However, Chesters' obligation to perform under the EFA is contingent upon satisfactory receipt of all conditions specified by them. These conditions include a complete and properly executed documentation package, as determined by Chesters. By signing, the Debtor irrevocably authorizes the Secured Party (Chesters) to pay the Supplier on behalf of the Debtor.

This means that even after the franchisee signs the EFA, Chesters is not obligated to provide financing until they are satisfied with all the required documentation. This protects Chesters by ensuring they have all necessary information and assurances before disbursing funds. The franchisee is essentially committing to the agreement upfront but must fulfill all documentation requirements to secure the financing.

For a prospective Chesters franchisee, this highlights the importance of carefully reviewing and completing all required documentation accurately and promptly. Any delays or deficiencies in the documentation could delay or even prevent the funding of the equipment, which is crucial for starting the franchise. Franchisees should communicate closely with Chesters to understand all the conditions and ensure they are met to avoid any issues with the financing process.