What is the monthly fee for the accounting and administrative services provided by Christian Brothers Automotive?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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- CBAC provides each store with accounting and administrative services which will include preparation of monthly financial reports, a reconciliation of all bank statements, all payroll processing, posting of sales activity to the general ledger, posting of payroll activity to the general ledger, hosting the financial management software, obtaining and filing of bank statements, calculation and posting of depreciation, booking monthly accruals, reconciliation of credit card payments and allocations, reconciliation of all debt balances, analysis of all general ledger accounts for proper category postings, weekly sales reports of all franchises, quarterly profit and loss statements and Gross Profit Margin reports for all franchises, year-end adjustments to inventory, analysis of gross profit margin between the point of sale software and the financial software, and general tax information and filings. The fee for these services is currently $550 per month. CBAC offers additional tax filing services for monthly sales and use tax filings and annual personal property tax renditions; and the fees for these services are $25.00 per month and $75.00 per year respectively. Additionally, as indicated above, CBAC provides IT support services for a fee of $200 per month. The fees for all of these services may be increased in the future, in the sole discretion of CBAC.
Source: Item 6 — OTHER FEES (FDD pages 17–25)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, franchisees must pay a monthly fee for accounting and administrative services. This fee currently stands at $550 per month. These services encompass a range of financial tasks, including the preparation of monthly financial reports, reconciliation of bank statements, payroll processing, posting of sales and payroll activity to the general ledger, hosting financial management software, obtaining and filing bank statements, calculating and posting depreciation, booking monthly accruals, reconciling credit card payments, reconciling debt balances, analyzing general ledger accounts, providing weekly sales reports, quarterly profit and loss statements, gross profit margin reports, year-end inventory adjustments, and analyzing gross profit margins between point of sale and financial software, along with general tax information and filings.
In addition to the $550 monthly fee, Christian Brothers Automotive offers additional tax filing services. These include monthly sales and use tax filings for $25.00 per month and annual personal property tax renditions for $75.00 per year. The FDD also states that Christian Brothers Automotive provides IT support services for a fee of $200 per month.
It is important to note that the fees for all of these services, including the accounting and administrative services, additional tax filing services, and IT support, are subject to change at the sole discretion of Christian Brothers Automotive. As a prospective franchisee, it is crucial to factor in these ongoing costs and the potential for fee increases when evaluating the financial viability of a Christian Brothers Automotive franchise.