What is the amount of the second installment of the franchise fee for Christian Brothers Automotive?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay CBAC an initial franchise fee of $135,000 (the "Franchise Fee"). This Franchise Fee is paid in two installments. The first installment is in the amount of $85,000 (the "Down Payment") and is due at the earlier of your signing the Franchise Agreement or your signing the Receipt and Acknowledgement Letter Agreement (the "Letter Agreement"), a copy of which is attached as Exhibit H. The second installment is in the amount of $50,000 and is due 30 days
prior to receiving your Certificate of Occupancy, which is generally assumed to be approximately six weeks prior to store opening. If you are allowed to finance the second installment, depending on your personal circumstances and credit worthiness, it will be paid to CBAC upon the closing of your startup loan, which is typically closed 30 days prior to receiving your Certificate of Occupancy as this coincides with initial working capital needs. $13,500 of the Down Payment will be fully earned when paid and non-refundable in consideration of administrative and other expenses CBAC incurs and for lost or deferred opportunities to enter into the Franchise Agreement with others.
Within 30 days of you and CBAC's execution of the Letter Agreement, and before you sign the Franchise Agreement, CBAC will provide you with a Non-Use, Non-Disclosure and Non-Competition Agreement, a copy of which is attached as Exhibit F, for execution. After you have signed the Non-Use, Non-Disclosure and Non-Competition Agreement, CBAC will provide you with credentials to access CBAC's proprietary and confidential training materials and Confidential Operations Manual.
Source: Item 5 — INITIAL FEES (FDD pages 14–17)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the initial franchise fee is $135,000, which is paid in two installments. The first installment, or down payment, is $85,000. The second installment is $50,000. This second payment is due 30 days prior to receiving the Certificate of Occupancy, typically around six weeks before the store opens.
Christian Brothers Automotive offers financing options for the second installment, depending on the franchisee's personal circumstances and creditworthiness. If financing is approved, the $50,000 payment is made to Christian Brothers Automotive upon the closing of the startup loan. This typically occurs 30 days before the Certificate of Occupancy is received, aligning with initial working capital needs.
For veterans, Christian Brothers Automotive participates in the International Franchise Association's VetFran Program, offering a discount of 10% off the franchise fee. This discount is applied to the second installment of the franchise fee upon receipt of the DD Form 214, which is the Certificate of Release or Discharge from Active Duty.