factual

Are all fees imposed by and payable to CBAC for a Christian Brothers Automotive franchise?

Christian_Brothers_Automotive Franchise · 2025 FDD

Answer from 2025 FDD Document

Notes:

    1. All fees are imposed by and payable to CBAC. Except as specifically described in this Item 6, all fees are non-refundable.

Source: Item 6 — OTHER FEES (FDD pages 17–25)

What This Means (2025 FDD)

According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, all fees are imposed by and payable to CBAC, which is the parent company. There is an exception, however, as specifically described in Item 6 of the FDD. The majority of the fees are non-refundable.

This means that a Christian Brothers Automotive franchisee will make payments directly to the franchisor for the various fees outlined in the FDD, such as the Continuing Royalty Fees, Additional Training and Support Fees, Administrative and Accounting Fees, Operating Systems & Internet Failover fees, Marketing Fees for both National and Regional Programs, and the Transfer Fee.

It is important for prospective franchisees to carefully review Item 6 of the FDD to understand the specific fees they will be responsible for, their amounts, due dates, and any conditions or exceptions that may apply. Understanding these financial obligations is crucial for budgeting and assessing the overall profitability of a Christian Brothers Automotive franchise.

The FDD also mentions Unapproved Expense Items, which require an equal royalty fee to Christian Brothers Automotive, regardless of the Split Profits calculation. Franchisees should pay close attention to what constitutes an Approved versus Unapproved Expense Item, as this distinction impacts their royalty obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.