What agreement must I sign when authorizing Christian Brothers Automotive to find an outside buyer?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
If you authorize CBAC to find an outside buyer one who does not currently own and operate a Christian Brothers Automotive franchise, you will be responsible for paying CBAC a transaction fee, which is the greater of 7% of the gross value of the business transaction or $50,000. Upon authorizing CBAC to find an outside buyer for you, you must sign a Transaction Fee Agreement (Exhibit F to the Franchise Agreement) and pay CBAC a non-refundable deposit equal to the greater of $10,000.00 or 1% of the listed price of the Franchised Business. The remainder of the transaction fee is earned and payable upon the closing of the transaction between you and the buyer and is in addition to the transfer fee due and payable to CBAC, which is currently $30,000 per business. The transaction fee described in this note is an Unapproved Expense Item, meaning this fee does not fall into the category of an Approved Expense Item.
Source: Item 6 — OTHER FEES (FDD pages 17–25)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, if you authorize Christian Brothers Automotive to find an outside buyer for your franchise, you must sign a Transaction Fee Agreement. This agreement is detailed in Exhibit F of the Franchise Agreement.
Additionally, upon authorizing Christian Brothers Automotive to find a buyer, you must pay a non-refundable deposit. This deposit is equal to the greater of $10,000.00 or 1% of the listed price of the franchised business. This deposit covers costs associated with financial due diligence, marketing, and lead generation.
Furthermore, Christian Brothers Automotive charges a transaction fee for finding a buyer, which is the greater of 7% of the gross value of the business transaction or $50,000. The remainder of this transaction fee is due upon the closing of the sale. This fee is in addition to the standard transfer fee, which is currently $30,000 per business.