What is the current monthly fee for the accounting and administrative services provided by Christian Brothers Automotive?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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- CBAC provides each store with accounting and administrative services which will include preparation of monthly financial reports, a reconciliation of all bank statements, all payroll processing, posting of sales activity to the general ledger, posting of payroll activity to the general ledger, hosting the financial management software, obtaining and filing of bank statements, calculation and posting of depreciation, booking monthly accruals, reconciliation of credit card payments and allocations, reconciliation of all debt balances, analysis of all general ledger accounts for proper category postings, weekly sales reports of all franchises, quarterly profit and loss statements and Gross Profit Margin reports for all franchises, year-end adjustments to inventory, analysis of gross profit margin between the point of sale software and the financial software, and general tax information and filings. The fee for these services is 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. Additionally, as indicated above, CBAC provides IT support services for a fee of $200 per month. The fees for all of these services may be increased in the future, in the sole discretion of CBAC.
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 must pay a monthly fee of $550 for accounting and administrative services. These services encompass a range of financial tasks, including 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, and generating quarterly profit and loss statements and gross profit margin reports. Christian Brothers Automotive also offers additional tax filing services for monthly sales and use tax filings at $25.00 per month and annual personal property tax renditions at $75.00 per year.
In addition to the accounting and administrative fees, Christian Brothers Automotive franchisees also pay a monthly IT support fee of $200. These fees cover the costs associated with providing comprehensive accounting and administrative support, which is crucial for franchisees to effectively manage their business finances and ensure compliance with financial regulations.
It's important to note that Christian Brothers Automotive retains the discretion to increase these fees in the future. Prospective franchisees should factor in the potential for fee increases when evaluating the overall cost of investment and ongoing operational expenses. Understanding the scope of services covered by these fees and the potential for adjustments is essential for making informed financial decisions as a Christian Brothers Automotive franchisee.