To whom is the initial franchise fee for Christian Brothers Automotive paid?
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 of $135,000 is paid to CBAC. The initial franchise fee may be $121,500 with the IFA VetFran Program Discount. The fee is paid in two installments: the first installment of $85,000 is due at the earlier of signing the Franchise Agreement or the Letter Agreement. The second installment of $50,000 (or $36,500 with the VetFran discount) is due 30 days prior to receiving the Certificate of Occupancy.
If the franchisee is allowed to finance the second installment, the payment will be made to CBAC from the business loan proceeds upon receipt of an invoice, typically within 30 days of opening. A portion of the down payment, specifically $13,500, is non-refundable, covering administrative expenses and lost opportunities for Christian Brothers Automotive.
For veterans who qualify for the IFA VetFran Program discount, the second installment is $36,500 and is due on or before three business days after Christian Brothers Automotive informs the franchisee in writing 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. This arrangement ensures that Christian Brothers Automotive receives the franchise fee as part of the initial investment required to start the franchise.