To whom do I make the initial franchise fee payment 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 the 2025 Christian Brothers Automotive FDD, the initial franchise fee of $135,000 is paid to CBAC (Christian Brothers Automotive Corporation). The initial franchise fee may be $121,500 with the IFA VetFran Program Discount.
The franchise fee is paid in two installments. The first installment, or down payment, is $85,000 and is due at the earlier of signing the Franchise Agreement or signing the Letter Agreement. The second installment is $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 from your business loan proceeds upon the receipt of an invoice, typically delivered within 30 days of opening.
If you are a current or former member of the United States Armed Forces and have been or will be honorably discharged, then Christian Brothers Automotive offers you a discount of 10% of the initial Franchise Fee. Upon receipt of your DD Form 214 "Certificate of Release or Discharge from Active Duty", Christian Brothers Automotive will apply the discount to the second installment of the initial Franchise Fee. You will pay the $85,000 Down Payment at the earlier of your signing the Franchise Agreement or your signing the Receipt and Acknowledgement Agreement. Your second installment will be in the amount of $36,500.00 and will be due on or before three business days after CBAC informs you in writing that building permits have been obtained, the land has been purchased, or the land has been leased for the building where your franchise will operate, unless you are allowed to finance the second installment, in which case it will be paid to CBAC from your business loan proceeds upon receipt of an invoice, typically delivered within 30 days of opening.