Who establishes the additional terms and conditions for Christian Brothers Automotive financing?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
EEMENT
Attached as Exhibit H is a copy of the current Receipt and Acknowledgement Letter Agreement and the current Receipt and Acknowledgement Letter Agreement (with financing provisions) and Promissory Note.
Receipt and Acknowledgement Letter Agreement
Christian Brothers Automotive Corporation 17725 Katy Freeway Houston, Texas 77094 [Date]
[First & Last name of Principal Operator and Spouse] [Address 1] [Address 2] [City, State and Zip Code]
Re: Receipt and Acknowledgement Letter Agreement
Dear Mr. and Mrs. [Franchisee's Last Name]:
The purpose of this Receipt and Acknowledgement Letter Agreement (this "Letter Agreement") is to document the understanding between you and Christian Brothers Automotive Corporation ("CBAC") as of the date of this Letter Agreement. You are in the process of becoming a franchisee of CBAC, and you hereby agree to execute CBAC's then-current Franchise Agreement (or cause an entity formed and owned by you for the sole purpose of owning and operating the Franchise to execute CBAC's then-current Franchise Agreement) (the "Franchise Agreement") at a later date in accordance with the following terms. In connection with this process, you have requested that your CBAC franchise (the "Franchise") granted under the Franchise Agreement be located in the [Metropolitan Statistical Area] area (the "Location"). CBAC is in the process of identifying and purchasing Land or acquiring an Existing Business and is incurring expenses in connection with that purchase. "Land" means the land that will be purchased or leased for the construction of a building and other improvements that will be used for the operation of your franchise. "Existing Business" means an operating CBAC franchise business in the general market of the Location. In order to proceed, CBAC and you have agreed that you will pay $85,000 (the "Down Payment") of the initial Franchise Fee under the Franchise Agreement upon the execution of this Letter Agreement. You hereby acknowledge and agree that $13,500 of the Down Payment is non-refundable in consideration of administrative and other expenses CBAC incurs and for lost or deferred opportunities to enter into a franchise agreement with
Source: Item 10 — FINANCING (FDD pages 39–40)
What This Means (2025 FDD)
Based on the 2025 Christian Brothers Automotive Franchise Disclosure Document, Exhibit H includes a copy of the current Receipt and Acknowledgement Letter Agreement and the current Receipt and Acknowledgement Letter Agreement (with financing provisions) and Promissory Note. This Receipt and Acknowledgment Letter Agreement documents the understanding between the prospective franchisee and Christian Brothers Automotive as of the date of the Letter Agreement.
The Letter Agreement states that the franchisee is in the process of becoming a franchisee of Christian Brothers Automotive and agrees to execute the then-current Franchise Agreement at a later date. In connection with this process, the franchisee has requested that their Christian Brothers Automotive franchise be located in a specific Metropolitan Statistical Area. Christian Brothers Automotive is in the process of identifying and purchasing Land or acquiring an Existing Business and is incurring expenses in connection with that purchase.
In order to proceed, Christian Brothers Automotive and the franchisee have agreed that the franchisee will pay $85,000 of the initial Franchise Fee under the Franchise Agreement upon the execution of this Letter Agreement. The franchisee acknowledges and agrees that $13,500 of the $85,000 Down Payment is non-refundable in consideration of administrative and other expenses Christian Brothers Automotive incurs and for lost or deferred opportunities to enter into a franchise agreement with others. The Receipt and Acknowledgment Letter Agreement (with financing provisions) and Promissory Note attached as Exhibit H would contain the specific terms and conditions for financing.