Does Christian Brothers Automotive guarantee the sale will be consummated 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. |
2.
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 under the Transaction Fee Agreement. While Christian Brothers Automotive agrees to use commercially reasonable efforts to locate and/or assist a franchisee in locating a buyer, this does not constitute a guarantee that a sale will occur. The efforts Christian Brothers Automotive may undertake include listing the business on their national franchise site, marketing the business to their existing database, and providing a Seller's Manual.
This agreement is initiated when a franchisee wishes to sell their Christian Brothers Automotive business to a buyer approved by Christian Brothers Automotive, and they engage Christian Brothers Automotive to assist in finding a potential buyer. The franchisee must pay a Transaction Fee for Christian Brothers Automotive's assistance.
Prospective franchisees should understand that while Christian Brothers Automotive will provide assistance in locating a buyer, the ultimate responsibility for selling the business rests with the franchisee. Factors such as the business's financial performance, location, and market conditions will all play a role in the successful sale of the franchise. Franchisees should consult with business advisors and legal counsel to fully understand their obligations and rights under the Transaction Fee Agreement.