Under the Chesters EFA, what is the condition for the secured party to adjust the Payment amount?

According to Chesters' 2025 Franchise Disclosure Document, the secured party is authorized to adjust the payment amount under the Equipment Finance Agreement (EFA) if the Financed Amount changes. This adjustment is made to maintain the same interest rate initially stated in the agreement.

This provision means that if the amount being financed increases or decreases due to changes in the cost of collateral or other factors, Chesters can modify the payment amount to reflect these changes while keeping the interest rate consistent. For a prospective franchisee, this implies that the monthly payments could fluctuate depending on the final cost of the equipment and any soft costs being financed.

It is important for franchisees to understand that while the interest rate remains the same, changes in the financed amount directly impact the payment amount. Franchisees should carefully review the terms of the EFA and seek clarification on how these adjustments are calculated to avoid any surprises in their monthly payments. Additionally, franchisees should ensure they receive proper documentation and evidence of any cost changes that necessitate adjustments to the financed amount.