Can Christian Brothers Automotive charge franchisees for maintenance fees for software?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
(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 Christian Brothers Automotive's 2025 Franchise Disclosure Document, franchisees may be charged for software maintenance fees. Christian Brothers Automotive may provide franchisees with software such as point-of-sale, accounting, and internet failover software. In return, Christian Brothers Automotive can charge franchisees fees that will be established at their discretion. These fees will be set forth in the Confidential Operations Manual or in writing.
In addition to the initial software fees, Christian Brothers Automotive may also charge franchisees annual licensing or maintenance fees for the software. These fees will also be established at Christian Brothers Automotive's discretion and outlined in the Confidential Operations Manual or in writing.
All software fees and charges are non-refundable and subject to change at Christian Brothers Automotive's sole discretion. Christian Brothers Automotive also retains the right to modify or discontinue any software provided to franchisees at any time.