What is the 'Effective Date' referring to in the Christian Brothers Automotive Transaction Fee Agreement?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS TRANSACTION FEE AGREEMENT (this "Agreement") is made and entered into as of (the "Effective Date"), by and among (hereinafter "you" or "Franchisee") and Christian Brothers Automotive Corporation, a Texas corporation (hereinafter "we," "us," or "CBAC"). |
|---|
| INTRODUCTION |
| WHEREAS, we and you are parties to that certain "Franchise Agreement" dated on or |
| about ("Franchise Agreement"), pursuant to which you were granted the |
| license to develop and operate a Christian Brothers Automotive business (the "Business") located |
| at; |
| WHEREAS, you have developed and are now operating such Business; and |
| WHEREAS, you wish to sell the Business to a CBAC-approved buyer, and engage us to |
| assist in locating a potential buyer. |
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive FDD, the "Effective Date" in the context of the Transaction Fee Agreement refers to the date on which the agreement is made and entered into. This agreement is between the franchisee and Christian Brothers Automotive Corporation (CBAC). The agreement outlines the terms under which CBAC will assist the franchisee in locating a potential buyer for their Christian Brothers Automotive business.
The Transaction Fee Agreement is initiated when a franchisee wishes to sell their existing Christian Brothers Automotive business and seeks assistance from CBAC in finding an approved buyer. CBAC's assistance may include listing the business on their national franchise site, marketing it to their existing database, and providing a Seller's Manual to aid in the marketing and sale of the business.
The "Effective Date" is a standard legal term that signifies the commencement of the agreement, marking the point from which the obligations and responsibilities outlined in the agreement become active and binding for both the franchisee and Christian Brothers Automotive.