Under the Chesters EFA, can Chesters reduce or set-off payments for any reason?

According to Chesters's 2025 Franchise Disclosure Document, under the EFA agreement, the franchisee's obligation to make payments is absolute and unconditional. This means that the franchisee cannot reduce or set-off payments for any reason whatsoever. This obligation remains in effect for the entire term of the agreement, which extends from the commencement date until all obligations are fulfilled.

Chesters does retain the right to adjust the payment amount if the financed amount changes, ensuring that the interest rate remains consistent. However, this adjustment is initiated by Chesters to maintain the agreed-upon financial terms, not by the franchisee to reduce their payment obligations. The document also specifies that the EFA is non-cancelable, further reinforcing the franchisee's commitment to fulfill all payment obligations throughout the term.

This clause is a significant point for prospective Chesters franchisees to consider. It highlights the rigidity of the payment structure and the absence of any provisions that would allow for payment adjustments or reductions due to unforeseen circumstances. Franchisees should carefully evaluate their financial stability and ability to meet these unconditional payment obligations before entering into the agreement.