What factors does Christian Brothers Automotive consider when selecting a site for my franchise?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
CBAC will select a site for your franchise business and present it to you for your approval. In selecting the site, CBAC considers such factors as demographics, access, traffic, competition, visibility, natural and man-made boundaries and existing customer base. CBAC or an entity affiliated with CBAC will purchase the site and construct the building to be leased to your franchise. If an affiliate of CBAC purchases the site and constructs the building that will be used for your franchise, CBAC will lease the site and building from that affiliate and will sublease the site and building to you. If CBAC purchases the site and constructs the building, CBAC will lease the building and land to you. You will have options to extend the lease for three consecutive five-year periods subject to the conditions referred to in Item 17 and contained in the Franchise Agreement. If you finance any acquisition or operational aspect of your franchise business you will incur application fees, loan fees, closing costs and other related financing costs. CBAC may alternately lease the facility from an unaffiliated third party instead of purchasing directly, as mentioned in Note 2 to Item 7. (Section 9.05).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 40–52)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Christian Brothers Automotive will select a site for your franchise business and present it to you for approval. In selecting the site, Christian Brothers Automotive considers factors such as demographics, access, traffic, competition, visibility, natural and man-made boundaries, and the existing customer base.
Christian Brothers Automotive or an affiliated entity will purchase the site and construct the building, which will then be leased to the franchisee. If an affiliate makes the purchase and construction, Christian Brothers Automotive will lease the site and building from that affiliate and then sublease it to the franchisee. Alternatively, Christian Brothers Automotive may lease the facility from an unaffiliated third party.
As a prospective franchisee, it is important to understand these site selection criteria, as the location can significantly impact the success of your Christian Brothers Automotive franchise. You should discuss these factors in detail with Christian Brothers Automotive during your due diligence to ensure that the proposed location aligns with your business goals and market conditions. Understanding the terms of the lease, including the options to extend, is also crucial for long-term planning and financial stability.