When is the first installment of the Christian Brothers Automotive initial franchise fee due?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
As indicated in Item 5, you must pay CBAC a Franchise Fee of $135,000. This Franchise Fee is paid in two installments. The first installment or Down Payment is in the amount of $85,000 and is due at the earlier of your signing the Franchise Agreement or your signing the Letter Agreement. The second installment is in the amount of $50,000 and is due 30 days prior to receiving your Certificate of Occupancy, which is generally assumed to be approximately six weeks prior to store opening. If you are allowed to finance the second installment, depending on your personal circumstances and credit worthiness, it will be paid to CBAC from your business loan proceeds upon the receipt of an invoice, typically delivered within 30 days of opening. $13,500 of the Down Payment will be fully earned when paid and non-refundable in consideration of administrative and other expenses CBAC incurs and for lost or deferred opportunities to enter into the Franchise Agreement with others.
Source: Item 7 — INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the initial franchise fee is $135,000, which is paid in two installments. The first installment, or down payment, is $85,000. This initial $85,000 payment is due at the earlier of signing the Franchise Agreement or signing the Letter Agreement.
The FDD also specifies that $13,500 of the down payment is considered fully earned and is non-refundable. This portion covers Christian Brothers Automotive's administrative and other expenses, as well as lost or deferred opportunities to enter into franchise agreements with other potential franchisees.
For veterans participating in the International Franchise Association's (IFA) VetFran Program, Christian Brothers Automotive offers a discount of 10% on the initial franchise fee. In this case, the veteran will still pay the $85,000 down payment at the earlier of signing the Franchise Agreement or the Receipt and Acknowledgement Agreement. The discount applies to the second installment of the franchise fee.