Are the fees paid to Christian Brothers Automotive generally refundable?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: OTHER FEES]
Notes:
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- All fees are imposed by and payable to CBAC. Except as specifically described in this Item 6, all fees are non-refundable.
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- You will pay a "Royalty Fee" of 50% of monthly "Split Profits" (as defined below) to CBAC each month during the initial term of your Franchise Agreement and during the remainder of all terms of your Franchise Agreement, including all extension and renewal periods. This payment is due on the last day of each succeeding month, and is based on the "Split Profits" estimated for the preceding month. Estimated payments will be due monthly and a final reconciliation will be calculated at each year end for a "true up" on the annual "Split Profits". "Split Profits" shall mean all monies, revenues and items of value from all sources generated in connection with and/or in any way related to the Franchised Business minus the Approved Expense Items. "Approved Expense Items" shall mean (i) those expense items calculated under Generally
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| closing of the sale. | |||
| Transaction Fee (Note 8) | The greater of 7% of the gross value of the business transaction or $50,000, payable as follows: (i) a non refundable deposit equal to the greater of $10,000 or 1% of the listed price of the Franchised Business paid when you sign our Transaction Fee Agreement, and (ii) the balance of the transaction fee is payable upon the closing of the transaction between you and the buyer. | Due upon closing of your selling transaction, except for the initial payment of the greater of $10,000 or 1% of the listed price of the Franchised Business. | If you authorize CBAC to find you a buyer or CBAC provides you a buyer from its interested candidates. This transaction fee is in addition to the above described transfer fees. The transaction fee is non refundable. The transaction fee deposit is to cover costs associated with financial due diligence, marketing and lead generation, among other items. |
You must pay us a non-refundable amount of $10,000 when we approve in writing a term sheet or letter of intent signed by you and the buyer.
You must pay an additional non-refundable sum of $20,000 at the closing of the sale.
Source: Item 6 — OTHER FEES (FDD pages 17–25)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, most fees are non-refundable. Item 6 explicitly states that all fees are imposed by and payable to Christian Brothers Automotive, and except as specifically described within Item 6, all fees are non-refundable.
Specifically, the transaction fee associated with Christian Brothers Automotive finding a buyer for your franchise is non-refundable. This fee is the greater of 7% of the gross value of the business transaction or $50,000. A non-refundable deposit, equal to the greater of $10,000 or 1% of the listed price of the franchised business, is required when you sign the Transaction Fee Agreement. Similarly, transfer fees paid to Christian Brothers Automotive are non-refundable. When transferring your franchise license, a non-refundable amount of $10,000 is due when Christian Brothers Automotive approves the term sheet or letter of intent, and an additional non-refundable $20,000 is due at the closing of the sale.
Prospective franchisees should carefully review Item 6 of the 2025 FDD to understand which fees are specifically described as refundable, as these appear to be the exception rather than the rule. Understanding the non-refundable nature of most fees is crucial for financial planning and risk assessment before investing in a Christian Brothers Automotive franchise.