When is the monthly rent for real estate and improvements 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 |
|---|---|---|---|---|
| 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) |
Source: Item 7 — INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, monthly rent for real estate and improvements is due on the first day of each month. This is a standard practice in the franchise industry, ensuring a consistent and predictable payment schedule for franchisees.
The FDD indicates that for new Christian Brothers Automotive stores, the monthly base rent typically ranges from approximately $22,000 to $38,000. However, this amount can vary based on construction and financing costs. Franchisees may also be required to pay additional fees and expenses related to the real property, such as property taxes, assessments, common area maintenance fees, and property owners' association fees.
Notably, the FDD mentions that Christian Brothers Automotive often attempts to provide a rent-free period of up to six months for new stores, meaning that the initial funds may not need to include rent. However, this is subject to change based on the financial terms negotiated for each construction project. Prospective franchisees should confirm the specific rent terms and any potential rent-free periods with Christian Brothers Automotive during their due diligence.