What factors does Christian Brothers Automotive consider when selecting a site for my franchise business?
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).
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- CBAC will construct the premises and direct you in selecting the decorations for the premises. (Item 7, Note 2 and Section 9.05).
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- Signage will be provided as part of the project cost. You are required to purchase all other fixtures, equipment and office furniture. CBAC will furnish you with specifications for those fixtures, equipment and office furniture. (Item 7, Notes 3 and 4 and 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 the site for your franchise and present it for your approval. Christian Brothers Automotive considers several factors when selecting a site. These factors include 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 the affiliate and then sublease it to the franchisee. Alternatively, Christian Brothers Automotive may lease the facility from an unaffiliated third party.
As a franchisee, you will have the option to extend the lease for three consecutive five-year periods, subject to certain conditions outlined in Item 17 and the Franchise Agreement. If you require financing for any aspect of your franchise, you will be responsible for all associated fees and costs. Signage will be provided as part of the project cost, but you are responsible for purchasing all other fixtures, equipment, and office furniture according to Christian Brothers Automotive's specifications.