When are marketing and advertising payments due 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 |
|---|---|---|---|---|
| MARKETING/ ADVERTISING | $35,000 to $40,000 incurred during your first year in business (Note 9) | When required by Advertising Suppliers | Start-up, monthly, or otherwise, per agreement with advertisers | Advertisers and Suppliers |
| NEW STORE OPENING MARKETING/ ADVERTISING | $20,000 to $30,000 (Note 10) | By Advertising suppliers | Starting 90 days prior to store opening until 60 days after store opening | Advertisers and Suppliers |
Source: Item 7 — INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, franchisees will encounter two distinct marketing/advertising expenses: general ongoing marketing and new store opening marketing. The ongoing marketing/advertising costs are estimated to be between $35,000 and $40,000 per year, with payments due "when required by Advertising Suppliers." This means the payment schedule (start-up, monthly, or otherwise) will depend on the agreements Christian Brothers Automotive franchisees make directly with their advertising suppliers.
In addition to the general marketing fund, franchisees should also budget for new store opening marketing/advertising expenses, estimated between $20,000 and $30,000. These payments are also made "by Advertising suppliers" and are due starting 90 days prior to the store opening and continue until 60 days after the store opening.
Prospective Christian Brothers Automotive franchisees should note that these marketing costs are subject to change. It is important to carefully review the Marketing section within the Confidential Operations Manual and consult with the CBAC Marketing Department to ensure compliance with their marketing guidelines and obtain necessary approvals for any local advertising efforts. Understanding the specific payment terms required by different advertising suppliers is crucial for managing cash flow during the initial stages of the franchise and throughout its operation.