Under the Chesters Equipment Finance Agreement (EFA), what are 'Soft Costs'?

According to Chesters' 2025 Franchise Disclosure Document, the Equipment Finance Agreement (EFA) mentions 'Soft Costs' in relation to the financing of the collateral. Specifically, the agreement states that the financed amount covers the cost of the collateral in addition to any shipping, installation, training, taxes, fees, and other soft costs that Ascentium Capital has approved for financing under the EFA. These costs are collectively referred to as 'Soft Costs'.

For a prospective Chesters franchisee, this means that when financing equipment through Ascentium Capital, the loan can include not only the cost of the equipment itself (the 'Collateral') but also associated expenses like shipping, installation, training, taxes, and various fees. These additional expenses, categorized as 'Soft Costs,' can be included in the financed amount, potentially easing the initial financial burden on the franchisee.

It is important to note that Chesters franchisees are responsible for selecting the supplier, the collateral, and any soft costs. The franchisee bears the risk that the soft costs are unsatisfactory or not delivered. In such cases, the franchisee's only recourse is against the supplier, not against Ascentium Capital. The franchisee's obligation to make payments under the EFA is absolute and unconditional, regardless of any issues with the collateral or soft costs or any failure by the supplier to deliver them.