What is the 'Location' referring to in the Christian Brothers Automotive Receipt and Acknowledgement Letter Agreement?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
terms. In connection with this process, you have requested that your CBAC franchise (the "Franchise") granted under the Franchise Agreement be located in the [Metropolitan Statistical Area] area (the "Location"). CBAC is in the process of identifying and purchasing Land or acquiring an Existing Business and is incurring expenses in connection with that purchase. "Land" means the land that will be purchased or leased for the construction of a building and other improvements that will be used for the operation of your franchise. "Existing Business" means an operating CBAC franchise business in the general market of the Location. In order to proceed, CBAC and you have agreed that you will pay $85,000 (the "Down Payment") of the initial Franchise Fee under the Franchise Agreement upon the execution of this Letter Agreement. You hereby acknowledge and agree that $13,500 of the Down Payment is non-refundable in consideration of administrative and other expenses CBAC incurs and for lost or deferred opportunities to enter into a franchise agreement with
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the 'Location' in the Receipt and Acknowledgement Letter Agreement refers to the specific metropolitan statistical area where the franchisee wants their Christian Brothers Automotive franchise to be situated.
Christian Brothers Automotive is in the process of securing land or an existing business within that area. 'Land' is defined as property to be purchased or leased for constructing the franchise building. 'Existing Business' refers to a pre-existing Christian Brothers Automotive franchise operating in the desired market area.
As part of the agreement, the franchisee pays a $85,000 down payment towards the initial franchise fee. Of this amount, $13,500 is non-refundable to cover Christian Brothers Automotive's administrative costs and lost opportunities during the site selection process. This financial commitment underscores the franchisee's intent to establish their business at the agreed-upon location.