Under the Chesters EFA, what is the condition for the first Payment to be due?

According to Chesters's 2025 Franchise Disclosure Document, the timing of the first payment under the Equipment Finance Agreement (EFA) is determined by Chesters. The pro-rated payment is due on the First Due Date, and the first Payment is due either in advance, on the First Due Date, or on the second Due Date, as specified by Chesters.

In practical terms, this means a prospective Chesters franchisee needs to be prepared to make their first payment either before the First Due Date, on the First Due Date, or on the subsequent due date. The specific timing is not determined by a fixed schedule but rather by Chesters's discretion. This introduces a degree of uncertainty, as the franchisee will need to coordinate with Chesters to understand when the initial payment is expected.

This flexibility, while potentially offering some franchisees a slightly delayed initial payment, also carries the risk of requiring an upfront payment. Franchisees should clarify this payment schedule during the negotiation of the EFA to avoid any surprises and ensure they have sufficient funds available when required. Understanding this condition is crucial for managing cash flow during the initial stages of setting up the Chesters franchise.