Under the Chesters EFA, what is the condition for subsequent Payments to be due?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
Subsequent Payments are due on the same day of each month thereafter (the period from the Commencement Date until full payment of your obligations, the "Term").
All payments are due whether or not we invoice you.
You authorize us to adjust the Payment amount to maintain the same interest rate stated above if the Financed Amount changes.
Source: Item 23 — **RECEIPTS (FDD pages 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, subsequent payments under the Equipment Finance Agreement (EFA) are due on the same day of each month after the commencement date until all obligations are fulfilled. The commencement date marks the start of the term, which continues until full payment and performance of all obligations are completed.
Chesters requires all payments to be made regardless of whether an invoice is issued. Furthermore, Chesters retains the right to adjust the payment amount to maintain the stated interest rate if the financed amount changes.
This arrangement means that as a Chesters franchisee, you must ensure timely payments each month to avoid potential late fees or default consequences. It is also important to stay aware of any adjustments to the financed amount, as this could impact the monthly payment. Franchisees should also note that the obligation to make payments is absolute and unconditional, meaning it is not subject to any reductions or set-offs for any reason.