How is the equipment, furniture, and software for a Christian Brothers Automotive franchise paid for?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type Of Expenditure | Amount (Note 13, 16 and 17) | Method Of Payment (Note 14 And 15) | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| EQUIPMENT, FURNITURE AND SOFTWARE | $255,000 to $280,000 (Note 3) | Cash As Purchased, invoiced by CBAC | Prior to opening Franchised Business, upon receipt of invoice | Equipment Vendors and/or CBAC (Note 3) |
- Prior to opening, you must purchase certain equipment, furniture and software from CBAC that will be used to operate the franchise. This will include the equipment listed in our Confidential Operations Manual and the software described below, at a current total cost of approximately $255,000 to $280,000. We may add or delete items to be purchased from or through us, or vendors from whom they must be purchased at any time. The equipment is purchased by us in order to obtain better pricing than individual purchasers could obtain, mitigate supply chain risk, and coincide with construction timelines. All equipment purchases will be rebilled to you at our cost, including any associated fees from the vendor.
Source: Item 7 — INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive FDD, franchisees must purchase certain equipment, furniture, and software from Christian Brothers Automotive prior to opening their franchise. This includes equipment listed in the Confidential Operations Manual and software, with a total cost ranging from approximately $255,000 to $280,000. These purchases are paid in cash as purchased and are invoiced by Christian Brothers Automotive.
Christian Brothers Automotive purchases the equipment to obtain better pricing, mitigate supply chain risks, and align with construction timelines. All equipment purchases are rebilled to the franchisee at cost, including any associated fees from the vendor. The payment is due prior to opening the franchised business, upon receipt of the invoice. Payments are made to equipment vendors and/or Christian Brothers Automotive.
Prospective franchisees should note that Christian Brothers Automotive may add or delete items to be purchased from them or through them, or change the vendors from whom they must be purchased at any time. This could impact the overall cost and payment schedule. It is important for potential franchisees to carefully review the Confidential Operations Manual and discuss any potential changes with Christian Brothers Automotive before making a final decision.