What is the formula for calculating the Christian Brothers Automotive transaction fee?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 17–25)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the transaction fee is calculated as the greater of 7% of the gross value of the business transaction or $50,000. This fee is applicable if a franchisee authorizes Christian Brothers Automotive to find a buyer or if Christian Brothers Automotive provides a buyer from its interested candidates.
This transaction fee is payable in two installments. First, a non-refundable deposit equal to the greater of $10,000 or 1% of the listed price of the franchised business is due when the franchisee signs the Transaction Fee Agreement. The balance of the transaction fee is then due upon the closing of the sale.
It's important to note that this transaction fee is in addition to the transfer fee, which is currently $30,000 per business. The transaction fee deposit covers costs associated with financial due diligence, marketing, and lead generation. This fee is considered an Unapproved Expense Item, meaning it does not fall into the category of Approved Expense Items.