Can Christian Brothers Automotive decline to purchase Land or acquire an Existing Business?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
ation. CBAC has the right to decline to purchase any Land and/or any Existing Business for any reason whatsoever. CBAC agrees to notify you in writing if it determines, for any reason, that it will not purchase Land or acquire an Existing Business. CBAC will then give you the option of either (a) choosing another one of the locations which CBAC has determined to establish a franchise or acquire another existing CBAC franchise business, or (b) terminating your relationship with CBAC and having your Down Payment (minus the $13,500 non-refundable portion) returned.
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- In the event a Termination Event (as defined below) occurs prior to CBAC executing a Contract for Land or the Existing Business, then CBAC will deduct the $13,500 nonrefundable portion of the Down Payment and also deduct the reasonable costs that it has incurred in selecting the site for Land, determining the viability of acquiring an Existing Business and preparing to enter into the franchise relationship with you, and return any remainder of the Down Payment to you, provided that such deductions will not exceed $38,500. Any amount not refunded shall be deemed fully earned when paid and non-refundable in consideration of administrative and other expenses CBAC has incurred. "Termination Event" means any of the following (i) you do not qualify for the necessary financing to open and operate your Franchise, (ii) you choose not to proceed with the decision to open the Franchise on Land, (iii) you choose not to proceed with the decision to acquire the Existing Business from CBAC, and/or (iv) you are unable to complete any of your other obligations that are conditions to your owning and operating a CBAC franchise. "Contract" means a contract for either (a) the acquisition of land in the general area of the Location, or (b) a contract for the acquisition of an existing business.
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- In the event a Termination Event occurs after CBAC has executed a Contract, then CBAC will retain all of the $85,000 Down Payment, which amount shall be deemed nonrefundable in consideration of administrative and other expenses CBAC has in
Source: Item 22 — CONTRACTS (FDD page 76)
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 or an existing business for any reason. If Christian Brothers Automotive decides not to proceed with a land purchase or acquisition of an existing business, they will notify the prospective franchisee in writing.
Following notification from Christian Brothers Automotive, the franchisee has the option to choose another location that Christian Brothers Automotive has identified for establishing a franchise or acquiring another existing Christian Brothers Automotive franchise. Alternatively, the franchisee can choose to terminate their relationship with Christian Brothers Automotive. If the franchisee chooses to terminate the agreement, Christian Brothers Automotive will return the down payment, minus a $13,500 non-refundable portion.
However, if a termination event occurs before Christian Brothers Automotive executes a contract for land or an existing business, Christian Brothers Automotive will deduct the $13,500 non-refundable portion of the down payment. They will also deduct reasonable costs incurred in selecting the site for land, determining the viability of acquiring an existing business, and preparing to enter into the franchise relationship, provided that such deductions do not exceed $38,500. If a termination event occurs after Christian Brothers Automotive has executed a contract, they will retain the entire $85,000 down payment, which will be deemed non-refundable.