With whom are the additional terms and conditions agreed upon for a Christian Brothers Automotive loan?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
EEMENT
Attached as Exhibit H is a copy of the current Receipt and Acknowledgement Letter Agreement and the current Receipt and Acknowledgement Letter Agreement (with financing provisions) and Promissory Note.
Receipt and Acknowledgement Letter Agreement
Christian Brothers Automotive Corporation 17725 Katy Freeway Houston, Texas 77094 [Date]
[First & Last name of Principal Operator and Spouse] [Address 1] [Address 2] [City, State and Zip Code]
Re: Receipt and Acknowledgement Letter Agreement
Dear Mr. and Mrs. [Franchisee's Last Name]:
The purpose of this Receipt and Acknowledgement Letter Agreement (this "Letter Agreement") is to document the understanding between you and Christian Brothers Automotive Corporation ("CBAC") as of the date of this Letter Agreement. You are in the process of becoming a franchisee of CBAC, and you hereby agree to execute CBAC's then-current Franchise Agreement (or cause an entity formed and owned by you for the sole purpose of owning and operating the Franchise to execute CBAC's then-current Franchise Agreement) (the "Franchise Agreement") at a later date in accordance with the following terms. In connection with this process, you have requested that your CBAC franchise (the "Franchise") granted under the Franchise Agreement be located in the [Metropolitan Statistical Area] area (the "Location"). CBAC is in the process of identifying and purchasing Land or acquiring an Existing Business and is incurring expenses in connection with that purchase. "Land" means the land that will be purchased or leased for the construction of a building and other improvements that will be used for the operation of your franchise. "Existing Business" means an operating CBAC franchise business in the general market of the Location. In order to proceed, CBAC and you have agreed that you will pay $85,000 (the "Down Payment") of the initial Franchise Fee under the Franchise Agreement upon the execution of this Letter Agreement. You hereby acknowledge and agree that $13,500 of the Down Payment is non-refundable in consideration of administrative and other expenses CBAC incurs and for lost or deferred opportunities to enter into a franchise agreement with
Source: Item 10 — FINANCING (FDD pages 39–40)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the additional terms and conditions for a loan are agreed upon between the franchisee and Christian Brothers Automotive Corporation (CBAC). Specifically, the Receipt and Acknowledgement Letter Agreement documents the understanding between the prospective franchisee and CBAC as of the date of the agreement. This agreement outlines the franchisee's intention to execute CBAC's current Franchise Agreement at a later date.
This Letter Agreement includes financing provisions and a Promissory Note, indicating that financial arrangements are part of the documented understanding. The agreement also mentions a Down Payment of $85,000, with $13,500 being non-refundable to cover CBAC's administrative and other expenses. This arrangement ensures that both parties are aligned regarding the financial commitments and conditions before proceeding with the franchise agreement.
For a prospective Christian Brothers Automotive franchisee, this means that any loan or financing terms will be explicitly documented and agreed upon with CBAC in the Receipt and Acknowledgement Letter Agreement. This agreement serves as a preliminary understanding before the formal Franchise Agreement is executed, providing clarity on financial obligations and the non-refundable portion of the down payment. It is crucial for the franchisee to carefully review and understand these terms before signing the agreement to avoid any potential misunderstandings or financial risks.