What is the current monthly Administrative and Accounting Fee charged by Christian Brothers Automotive?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Continuing Royalty Fees (Note 2) | 50% of monthly “Split Profits” during the initial franchise term and during all extensions and renewals. | Estimated monthly amount due on the last day of each succeeding month. | The Royalty Fee is based on the “Split Profits” for the previous month. “Split Profits” are defined below in Note 2. |
| Additional Training and Support Fees (Note 3) | Established by CBAC. Fees will be uniform for all franchisees. | Upon Provision of Services. | Additional training may be offered off-site, and you will be responsible for all expenses related to attendance. |
| Type of Fee | Amount | Due Date | Remarks |
| (Note 1) | |||
| --------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Administrative and Accounting Fees (Note 4) | Currently $550 per month. CBAC offers additional tax filing services for monthly sales and use tax filings and annual personal property tax renditions; and the fees for these services are $25.00 per month and $75.00 per year respectively. See Note 4. |
Source: Item 6 — OTHER FEES (FDD pages 17–25)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, franchisees are currently charged $550 per month for administrative and accounting services. These services include the preparation of monthly financial reports, reconciliation of bank statements, payroll processing, posting of sales and payroll activity to the general ledger, hosting financial management software, obtaining and filing bank statements, calculating and posting depreciation, booking monthly accruals, reconciling credit card payments and allocations, reconciling debt balances, analyzing general ledger accounts, providing weekly sales reports, quarterly profit and loss statements, and year-end inventory adjustments. Christian Brothers Automotive also offers additional tax filing services for monthly sales and use tax filings at $25 per month and annual personal property tax renditions at $75 per year.
In addition to the administrative and accounting fees, Christian Brothers Automotive franchisees also pay a monthly IT support fee of $200. It is important to note that Christian Brothers Automotive retains the right to increase the fees for these services at its discretion in the future.
Prospective franchisees should consider these ongoing monthly fees as part of their overall operating expenses. Understanding the scope of services covered by the administrative and accounting fee is crucial for budgeting and financial planning. Franchisees should also be aware of the potential for fee increases and factor that into their long-term financial projections.