How is the initial franchise fee for Christian Brothers Automotive paid?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay CBAC an initial franchise fee of $135,000 (the "Franchise Fee"). This Franchise Fee is paid in two installments. The first installment is in the amount of $85,000 (the "Down Payment") and is due at the earlier of your signing the Franchise Agreement or your signing the Receipt and Acknowledgement Letter Agreement (the "Letter Agreement"), a copy of which is attached as Exhibit H. The second installment is in the amount of $50,000 and is due 30 days
prior to receiving your Certificate of Occupancy, which is generally assumed to be approximately six weeks prior to store opening. If you are allowed to finance the second installment, depending on your personal circumstances and credit worthiness, it will be paid to CBAC upon the closing of your startup loan, which is typically closed 30 days prior to receiving your Certificate of Occupancy as this coincides with initial working capital needs. $13,500 of the Down Payment will be fully earned when paid and non-refundable in consideration of administrative and other expenses CBAC incurs and for lost or deferred opportunities to enter into the Franchise Agreement with others.
Within 30 days of you and CBAC's execution of the Letter Agreement, and before you sign the Franchise Agreement, CBAC will provide you with a Non-Use, Non-Disclosure and Non-Competition Agreement, a copy of which is attached as Exhibit F, for execution. After you have signed the Non-Use, Non-Disclosure and Non-Competition Agreement, CBAC will provide you with credentials to access CBAC's proprietary and confidential training materials and Confidential Operations Manual.
Source: Item 5 — INITIAL FEES (FDD pages 14–17)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the initial franchise fee is $135,000. This fee is paid in two installments. The first installment, called the "Down Payment," is $85,000 and is due at the earlier of signing the Franchise Agreement or signing the Receipt and Acknowledgement Letter Agreement. Of this down payment, $13,500 is considered fully earned and non-refundable to Christian Brothers Automotive upon payment, covering administrative and other expenses.
The second installment amounts to $50,000 and is due 30 days before receiving the Certificate of Occupancy, typically around six weeks before the store opens. However, Christian Brothers Automotive may allow franchisees to finance this second installment, depending on their personal circumstances and creditworthiness. If financed, the $50,000 is paid to Christian Brothers Automotive upon the closing of the startup loan, which usually occurs 30 days before the Certificate of Occupancy, aligning with initial working capital needs.
Christian Brothers Automotive offers a discount on the Franchise Fee for veterans through the IFA VetFran Program. If a franchisee is a current or former member of the United States Armed Forces with an honorable discharge, Christian Brothers Automotive offers a 10% discount on the Franchise Fee. This discount is applied to the second installment of the Franchise Fee upon receipt of the DD Form 214.