To whom is the monthly rent for real estate and improvements paid 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, the monthly rent for real estate and improvements is paid to CBAC. The document specifies that for new Christian Brothers Automotive stores, franchisees will typically lease or sublease the building and property from CBAC or an affiliate.
The monthly base rents for new stores range from approximately $22,000 to $38,000. This amount can fluctuate based on construction and financing costs. In addition to the base rent, franchisees are also responsible for other property-related expenses such as property taxes, assessments, common area maintenance fees, and property owners' association fees.
In some instances, Christian Brothers Automotive may contract with an unaffiliated party to acquire land and construct the building, which CBAC then leases from that party. In this case, the franchisee would still sublease from CBAC. The FDD also states that on a case-by-case basis, CBAC may decide to sell a site and building to a franchisee or an unrelated third party. If sold to a third party, CBAC will lease the site and building from them and continue to sublease it to the franchisee.