If a franchisee receives financing from Christian Brothers Automotive, what document are they required to sign?

According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, if a franchisee receives financing, they are required to sign the Receipt and Acknowledgement Letter Agreement (with financing provisions) and Promissory Note. This agreement documents the understanding between the franchisee and Christian Brothers Automotive as they become a franchisee.

The Receipt and Acknowledgement Letter Agreement outlines the terms and conditions associated with the franchise process. It confirms that the franchisee is in the process of executing Christian Brothers Automotive's current Franchise Agreement. The letter agreement also acknowledges that the franchisee has requested that their franchise be located in a specific Metropolitan Statistical Area and that Christian Brothers Automotive is incurring expenses to purchase land or acquire an existing business for that location.

As part of this agreement, the franchisee agrees to pay $85,000 as a down payment of the initial Franchise Fee upon execution of the Letter Agreement. It is important to note that $13,500 of this down payment is non-refundable to cover administrative and other expenses incurred by Christian Brothers Automotive, as well as lost or deferred opportunities to enter into franchise agreements with others. This agreement ensures that both parties are aligned and understand the financial commitments and non-refundable portions of the initial investment.