What is the deadline for Christian Brothers Automotive to identify land for purchase?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
CBAC agrees to identify Land (as defined below) for purchase and begin the process of negotiating a letter of intent for such purchase no later than one year following the date of the Letter Agreement. In the event CBAC fails to meet this deadline, you will have a thirty (30) day option to terminate your relationship with CBAC and have your Down Payment (minus the $13,500 non-refundable portion) returned. If you choose not to terminate your relationship with CBAC within this thirty (30) day period, your Franchise relationship with CBAC will continue, subject to the terms of the Letter Agreement. "Land" means the land that will be purchased or leased for the construction of a building and other improvements that will be used for the operation of your franchise.
CBAC may not be able to purchase Land that you approve and CBAC has agreed to attempt to acquire. CBAC has the right to decline to purchase any Land for any reason whatsoever. CBAC agrees to notify you in writing if it determines, for any reason, that it will not purchase the Land. CBAC will then give you the option of either (a) choosing another location where CBAC is willing to attempt to acquire Land where your franchise will operate, or (b) terminating your relationship with CBAC and having your Down Payment (minus the $13,500 portion which is non-refundable) refunded to you.
Source: Item 5 — INITIAL FEES (FDD pages 14–17)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Christian Brothers Automotive agrees to identify land for purchase and begin negotiating a letter of intent no later than one year following the date of the Letter Agreement. This Letter Agreement is signed before the Franchise Agreement.
If Christian Brothers Automotive fails to meet this one-year deadline, the prospective franchisee has a 30-day option to terminate their relationship with Christian Brothers Automotive. If the franchisee chooses to terminate, they will receive their Down Payment back, minus the $13,500 non-refundable portion. If the franchisee does not terminate within the 30-day period, the franchise relationship continues under the terms of the Letter Agreement.
However, Christian Brothers Automotive has the right to decline to purchase any land for any reason. If Christian Brothers Automotive decides not to purchase the approved land, they will notify the franchisee in writing and give them the option to choose another location or terminate the relationship with a refund of the Down Payment, minus the $13,500 non-refundable portion.