What is the minimum transaction fee a Christian Brothers Automotive franchisee might pay when selling their business?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
If you authorize CBAC to find an outside buyer one who does not currently own and operate a Christian Brothers Automotive franchise, you will be responsible for paying CBAC a transaction fee, which is the greater of 7% of the gross value of the business transaction or $50,000. Upon authorizing CBAC to find an outside buyer for you, you must sign a Transaction Fee Agreement (Exhibit F to the Franchise Agreement) and pay CBAC a non-refundable deposit equal to the greater of $10,000.00 or 1% of the listed price of the Franchised Business. The remainder of the transaction fee is earned and payable upon the closing of the transaction between you and the buyer and is in addition to the transfer fee due and payable to CBAC, which is currently $30,000 per business.
Source: Item 6 — OTHER FEES (FDD pages 17–25)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, if a franchisee authorizes Christian Brothers Automotive to find an outside buyer who is not a current franchisee, the franchisee will be responsible for paying Christian Brothers Automotive a transaction fee. This fee is the greater of 7% of the gross value of the business transaction or $50,000.
Upon authorizing Christian Brothers Automotive to find an outside buyer, the franchisee must sign a Transaction Fee Agreement and pay Christian Brothers Automotive a non-refundable deposit equal to the greater of $10,000 or 1% of the listed price of the franchised business.
The remainder of the transaction fee is earned and payable upon the closing of the transaction between the franchisee and the buyer. This transaction fee is in addition to the transfer fee due to Christian Brothers Automotive, which is currently $30,000 per business. Therefore, the minimum transaction fee a franchisee would pay Christian Brothers Automotive is $50,000, in addition to a $30,000 transfer fee.