Does Christian Brothers Automotive guarantee the sale of the business under the Transaction Fee Agreement?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS TRANSACTION FEE AGREEMENT (this "Agreement") is made and entered into as of (the "Effective Date"), by and among (hereinafter "you" or "Franchisee") and Christian Brothers Automotive Corporation, a Texas corporation (hereinafter "we," "us," or "CBAC"). |
|---|
| INTRODUCTION |
| WHEREAS, we and you are parties to that certain "Franchise Agreement" dated on or |
| about ("Franchise Agreement"), pursuant to which you were granted the |
| license to develop and operate a Christian Brothers Automotive business (the "Business") located |
| at; |
| WHEREAS, you have developed and are now operating such Business; and |
| WHEREAS, you wish to sell the Business to a CBAC-approved buyer, and engage us to |
| assist in locating a potential buyer. |
| AGREEMENT |
| NOW THEREFORE, in consideration of the foregoing and other good and valuable |
| consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as |
| follows: |
| 1. |
| CBAC Sales Assistance. In return for the Transaction Fee (as defined below) we |
| agree to use commercially reasonable efforts to locate and/or assist you in locating a buyer. Our |
| efforts may consist of some or all of the following, but our efforts are not necessarily limited to |
| such: |
| a. |
| List the business on our national franchise site as an available opportunity. |
| b. |
| Market the business to our existing database. |
| c. |
| Provide a Seller's Manual to provide assistance in marketing and selling your |
| business. |
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Christian Brothers Automotive does not guarantee the sale of a franchise business under the Transaction Fee Agreement. However, Christian Brothers Automotive agrees to use commercially reasonable efforts to locate and/or assist a franchisee in locating a buyer. These efforts may include listing the business on their national franchise site, marketing the business to their existing database, and providing a Seller's Manual to assist in marketing and selling the business.
It is important to note that Christian Brothers Automotive's efforts are not necessarily limited to these actions, but the agreement does not guarantee a successful sale. The agreement states that in return for a Transaction Fee, Christian Brothers Automotive will provide sales assistance.
For a prospective franchisee, this means that while Christian Brothers Automotive will offer assistance in finding a buyer for their business, the ultimate responsibility for selling the franchise lies with the franchisee. The franchisee should not rely solely on Christian Brothers Automotive to find a buyer and should actively participate in the sales process. A franchisee should also be aware that a transaction fee will be required.