Can Christian Brothers Automotive change the IT support fees at its discretion?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) IT Support Fee. Franchisor may provide Franchisee with information technology ("IT") support such as web hosting and software/hardware support in return for a fee paid by Franchisee to Franchisor equal to an amount determined from time to time by Franchisor, in its sole discretion, and set forth in the Confidential Operations Manual. All fees paid in accordance with this Section are non- refundable, and subject to change in Franchisor's sole discretion. Franchisor may modify the IT support services it provides or discontinue the provision of such services at any time.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Christian Brothers Automotive has the authority to change IT support fees at its discretion. The document states that the IT support fee, paid by the franchisee to Christian Brothers Automotive, can be determined and modified from time to time by Christian Brothers Automotive. These fees are detailed in the Confidential Operations Manual.
This means that as a franchisee, you are subject to potential changes in the IT support fees throughout the term of your franchise agreement. These fees cover IT support services such as web hosting and software/hardware support. It is important to note that all fees paid for IT support are non-refundable.
Prospective franchisees should carefully consider this aspect, as it introduces an element of financial uncertainty. While the initial fee will be disclosed in the Confidential Operations Manual, Christian Brothers Automotive retains the right to adjust this fee, potentially impacting the franchisee's operating costs. It would be prudent to inquire about the typical frequency and magnitude of past IT support fee adjustments to better understand the potential financial implications.