What is the initial franchise fee for a Christian Brothers Automotive franchise?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type Of Expenditure | Amount (Note 13, 16 and 17) | Method Of Payment (Note 14 And 15) | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| INITIAL FRANCHISE FEE | $135,000 (Note 1) $121,500 with IFA VetFran Program Discount (Note 1) | a) $85,000 b) $50,000 With Discount: a) $85,000 b) $36,500 (Note 1) | a) See Note 1 b) See Note 1 | CBAC (Note 1) |
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. However, Christian Brothers Automotive offers a discount to veterans through the IFA VetFran Program, reducing the initial franchise fee to $121,500. This discount represents a 10% reduction of the standard franchise fee.
The standard $135,000 fee is paid in two installments. The first installment, a down payment of $85,000, is due at the earlier of signing the Franchise Agreement or the Letter Agreement. The second installment of $50,000 is due 30 days before receiving the Certificate of Occupancy, typically around six weeks before the store opens. Franchisees may be able to finance the second installment, depending on their financial situation and creditworthiness. If financing is approved, the $50,000 will be paid to Christian Brothers Automotive from the franchisee's business loan proceeds upon receipt of an invoice, usually within 30 days of opening.
For veterans who qualify for the IFA VetFran Program discount, the payment structure is slightly different. They also pay an $85,000 down payment at the earlier of signing the Franchise Agreement or the Receipt and Acknowledgement Agreement. The discounted second installment is $36,500 and is due on or before three business days after Christian Brothers Automotive provides written notice that building permits have been obtained, the land has been purchased, or the land has been leased for the building where the franchise will operate. Similar to the standard fee, veterans may also be able to finance this second installment.
It's important to note that $13,500 of the initial $85,000 down payment is non-refundable. This portion covers administrative and other expenses Christian Brothers Automotive incurs, as well as lost or deferred opportunities to enter into franchise agreements with others. The remaining portion of the down payment may be refundable under specific conditions outlined in the FDD, such as if Christian Brothers Automotive fails to identify land for purchase within a year of the Letter Agreement.