Are the costs for software purchases for a Christian Brothers Automotive franchise subject to change?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
The software that will be provided by CBAC and used to operate your CBA franchise include a shop management system, an accounting software suite, associated middleware, a client communication system, an automotive animations library, an online training platform with relevant content, website hosting, SEO management, a phone call tracking platform, email accounts and cloud document suite, network equipment updates and warranty services, PCI
compliance services, an antivirus protection software, remote support agents, and required client access licenses at the approximate upfront cost of $1,650 and the approximate ongoing cost of $10,500 annually, plus data overages. Costs are subject to change and will vary depending on the underlying vendors' current prices. The fees for software purchases are refundable prior to store opening. See Item 8 for more information about the equipment, furniture and software that will be needed to operate the franchise.
If you elect to utilize CBAC's in-house loan administration services, a $2,500 loan administration fee will be payable to CBAC upon the closing and funding of your startup loan, which generally occurs upon receiving your Certificate of Occupancy.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 33–36)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the costs associated with software purchases are indeed subject to change. The initial upfront software costs are approximately $1,650, with ongoing annual costs of around $10,500, excluding potential data overages. These costs can fluctuate based on the pricing of the underlying vendors. This means that the actual amount a franchisee pays for software may differ from the stated estimates due to market conditions and vendor pricing adjustments.
This variability in software costs is a common practice in franchising, as franchisors often rely on third-party vendors for essential services. While Christian Brothers Automotive provides an initial cost estimate, franchisees should be prepared for potential increases in these expenses over time. It is prudent for prospective franchisees to factor in a buffer when budgeting for software expenses to accommodate these potential changes.
Christian Brothers Automotive does offer some financial protection related to software costs, as the fees for software purchases are refundable prior to the store opening. This provides a window for franchisees to reassess their investment if the software costs become unexpectedly high before they begin operations. Additionally, the franchisor retains the right to add or delete items that must be purchased through them or designated vendors, and all costs are subject to change, which could impact the overall financial obligations of the franchisee.
Therefore, when considering a Christian Brothers Automotive franchise, it is essential to discuss the potential for software cost fluctuations with the franchisor and to understand the factors that could influence these changes. This will help in creating a more accurate financial forecast and managing expectations regarding ongoing operational expenses.