What is the deadline for Christian Brothers Automotive to notify the franchisee in writing if it will not purchase the Land?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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 has the right to decline to purchase land for any reason. The FDD states that Christian Brothers Automotive agrees to notify the franchisee in writing if it determines that it will not purchase the land. However, the FDD does not specify a deadline for this notification.
If Christian Brothers Automotive decides not to purchase the land, the franchisee has two options: choose another location where Christian Brothers Automotive is willing to attempt to acquire land, or terminate the relationship with Christian Brothers Automotive and receive a refund of the down payment, minus the $13,500 non-refundable portion.
Because the FDD does not specify a deadline for Christian Brothers Automotive to notify the franchisee of its decision not to purchase land, it is important for a prospective franchisee to discuss this point with the franchisor. Understanding the expected timeframe for this decision is crucial for planning and managing the investment effectively. A prospective franchisee should ask Christian Brothers Automotive about the typical timeframe for land acquisition decisions and whether there are any factors that could delay this process.