Can Christian Brothers Automotive discontinue providing IT support services to franchisees?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) IT Support Fee. Franchisor may provide Franchisee with information technology ("IT") support such as web hosting and software/hardware support in return for a fee paid by Franchisee to Franchisor equal to an amount determined from time to time by Franchisor, in its sole discretion, and set forth in the Confidential Operations Manual. All fees paid in accordance with this Section are non- refundable, and subject to change in Franchisor's sole discretion. Franchisor may modify the IT support services it provides or discontinue the provision of such services at any time.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, Christian Brothers Automotive retains the right to modify or discontinue IT support services provided to franchisees. The FDD specifies that Christian Brothers Automotive may offer IT support, such as web hosting and software/hardware assistance, in exchange for a fee. This fee is determined by Christian Brothers Automotive at its discretion and is detailed in the Confidential Operations Manual.
This arrangement means that while Christian Brothers Automotive may provide IT support, it is not obligated to do so indefinitely. The company can change the services offered or stop providing them altogether. Any fees paid for IT support are non-refundable and subject to change at Christian Brothers Automotive's sole discretion.
For a prospective franchisee, this indicates a potential risk. While IT support may be initially available, Christian Brothers Automotive can discontinue it, potentially leaving the franchisee to find and pay for alternative IT solutions. It is important for a potential franchisee to factor this possibility into their business planning and budget considerations, and to discuss the long-term IT support strategy with Christian Brothers Automotive during their due diligence.