Does Christian Brothers Automotive charge a fee for IT support?
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.
(d) Software Fees. Franchisor may provide Franchisee with certain software, including, without limitation, point-of-sale software, accounting software, and internet failover software, in return for fees to be established in Franchisor's discretion and set forth in the Confidential Operations Manual or otherwise in writing, and payable by Franchisee. Related to the foregoing, Franchisor may further charge Franchisee for annual licensing or maintenance fees established in Franchisor's discretion and set forth in the Confidential Operations Manual or otherwise in writing, and payable by Franchisee. All fees and charges paid in accordance with this Section 4.03(d) are non-refundable, and subject to change in Franchisor's sole discretion. Franchisor may modify any such software it provides or discontinue the provision of such software 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 may provide franchisees with IT support, such as web hosting and software/hardware support, in return for a fee. The amount of this IT support fee is determined by Christian Brothers Automotive at its sole discretion and is detailed in the Confidential Operations Manual.
This fee structure means that franchisees may incur ongoing costs for IT support services provided by Christian Brothers Automotive. The exact amount of the fee is not specified in the FDD but is subject to change at Christian Brothers Automotive's discretion, which introduces a degree of uncertainty for franchisees in budgeting for these services. Franchisees should consult the Confidential Operations Manual to understand the current fee structure and inquire about potential future changes.
Additionally, the FDD states that all IT support fees paid to Christian Brothers Automotive are non-refundable. Christian Brothers Automotive also retains the right to modify the IT support services offered or discontinue them altogether. This implies that franchisees bear the risk of changes to the scope or availability of IT services, even after paying the associated fees.
Christian Brothers Automotive may also charge franchisees fees for certain software, including point-of-sale, accounting, and internet failover software, as well as annual licensing or maintenance fees. These fees are also established at Christian Brothers Automotive's discretion and detailed in the Confidential Operations Manual or other written documentation. Like the IT support fees, these software fees are non-refundable and subject to change, and Christian Brothers Automotive can modify or discontinue the software provided at any time.