Under the Chesters Equipment Finance Agreement (EFA), what is the 'Estimated Cost' based on?

According to Chesters's 2025 Franchise Disclosure Document, the 'Estimated Cost' under the Equipment Finance Agreement (EFA) is the total estimated cost of the collateral and financed soft costs, adjusted for any non-reimbursed down payments made by the franchisee. This cost is provided to Ascentium Capital, the lender, either by the franchisee or the supplier.

For a prospective Chesters franchisee, this means that the amount financed through the EFA is directly tied to the estimated cost of the equipment and any additional soft costs that are approved for financing, such as shipping, installation, training, taxes, and fees. It is important for the franchisee to ensure that the estimated costs provided to the lender are accurate, as these figures will determine the financed amount and subsequent payment schedule.

Chesters franchisees should also be aware that if the final actual cost differs from the initial estimate, the financed amount will be adjusted to reflect the actual cost. The franchisee may be required to execute a document reflecting these adjustments, and they are entitled to request evidence of the cost changes from the lender. This highlights the importance of keeping accurate records and communicating effectively with both the supplier and the lender throughout the financing process.