What is the 'Business' referring to in the Christian Brothers Automotive Transaction Fee Agreement?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS TRANSACTION FEE AGREEMENT (this "Agreement") is made and entered into as of (the "Effective Date"), by and among (hereinafter "you" or "Franchisee") and Christian Brothers Automotive Corporation, a Texas corporation (hereinafter "we," "us," or "CBAC"). |
|---|
| INTRODUCTION |
| WHEREAS, we and you are parties to that certain "Franchise Agreement" dated on or |
| about ("Franchise Agreement"), pursuant to which you were granted the |
| license to develop and operate a Christian Brothers Automotive business (the "Business") located |
| at; |
| WHEREAS, you have developed and are now operating such Business; and |
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the "Business" in the Transaction Fee Agreement refers to the Christian Brothers Automotive business that the franchisee was granted the license to develop and operate. The agreement states that the franchisee wishes to sell this business to a CBAC-approved buyer and is engaging Christian Brothers Automotive to assist in locating a potential buyer.
Christian Brothers Automotive's assistance in this process may include listing the business on their national franchise site, marketing the business to their existing database, and providing a Seller's Manual to aid in marketing and selling the business. This service is offered in return for a Transaction Fee, as defined in the agreement.
For a prospective franchisee, this means that if they later decide to sell their Christian Brothers Automotive franchise, this agreement outlines the terms under which Christian Brothers Automotive will provide assistance in finding a buyer. It is important to understand the details of this agreement, including the scope of assistance provided by Christian Brothers Automotive and the associated Transaction Fee, before entering into the Franchise Agreement.