Can Christian Brothers Automotive change the required computer equipment for franchisees in the future?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase and maintain an electronic point of sale cash register system to record gross sales and transaction data. CBAC requires that you purchase the following computer equipment: Shop Management Software accounting software (designated by CBAC) and approximately eight (8) personal computers, four (4) tablet computers, two (2) multi-function printers, and additional computer accessories as needed (Item 7, Note 3). We will have the right to access all information and financial data recorded by the system for audit and sales verification purposes. The approximate initial cost to you for this equipment is $23,100, which is included in the initial equipment cost estimate. We reserve the right to change our specifications in the future to take advantage of technological advances or to adapt the system to meet operational needs and changes. We may require you to bring any computer hardware and software, related peripheral equipment and communications systems into conformity with our then-current standards. We will endeavor to keep these changes infrequent and reasonable in cost, but the Franchise Agreement does not impose a limit as to the number or cost of such changes to the computer equipment.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 40–52)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, franchisees are required to purchase specific computer equipment, including shop management and accounting software, personal computers, tablet computers, printers, and accessories. The initial cost for this equipment is approximately $23,100, which is included in the initial equipment cost estimate. Christian Brothers Automotive retains the right to modify these specifications in the future to incorporate technological advancements or to adapt the system to meet operational needs.
Christian Brothers Automotive may require franchisees to update their existing computer hardware, software, related peripheral equipment, and communication systems to align with the franchisor's current standards. While Christian Brothers Automotive intends to keep these changes infrequent and reasonable in cost, the Franchise Agreement does not impose a specific limit on the number or cost of such changes. This means that franchisees should be prepared for potential future investments in technology upgrades to remain compliant with Christian Brothers Automotive's evolving system standards.
This policy is fairly standard in franchising, as franchisors need the flexibility to update technology to maintain system-wide efficiency and competitiveness. However, the lack of a cap on the cost of changes means that franchisees bear the risk of potentially significant expenses related to these updates. Prospective franchisees should inquire about the typical frequency and cost of past technology upgrades to better understand the potential financial impact of this requirement.