What is the approximate timeframe assumed for receiving the Certificate of Occupancy for a Christian Brothers Automotive franchise?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 5 — INITIAL FEES (FDD pages 14–17)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the Certificate of Occupancy is generally assumed to be received approximately six weeks prior to the store opening. This timeframe is relevant because the second installment of the initial franchise fee, amounting to $50,000, is due 30 days prior to receiving the Certificate of Occupancy.
Furthermore, if a franchisee chooses to finance this second installment, the payment to Christian Brothers Automotive will occur upon the closing of the startup loan. This loan typically closes 30 days before the Certificate of Occupancy is received, aligning with the franchisee's initial working capital needs. This arrangement suggests that franchisees should plan their financing and operational readiness to coincide with this six-week window before the store's grand opening.
It is important for prospective franchisees to understand this timeline, as delays in obtaining the Certificate of Occupancy could impact the payment schedule of the franchise fee and the closing of the startup loan. Franchisees should maintain open communication with Christian Brothers Automotive and local authorities to ensure they meet all requirements and deadlines for receiving the Certificate of Occupancy in a timely manner.