What is the monthly IT support fee for a Christian Brothers Automotive franchise currently?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| closing of the sale. | |||
| Transaction Fee (Note 8) | The greater of 7% of the gross value of the business transaction or $50,000, payable as follows: (i) a non refundable deposit equal to the greater of $10,000 or 1% of the listed price of the Franchised Business paid when you sign our Transaction Fee Agreement, and (ii) the balance of the transaction fee is payable upon the closing of the transaction between you and the buyer. | Due upon closing of your selling transaction, except for the initial payment of the greater of $10,000 or 1% of the listed price of the Franchised Business. | If you authorize CBAC to find you a buyer or CBAC provides you a buyer from its interested candidates. This transaction fee is in addition to the above described transfer fees. The transaction fee is non refundable. The transaction fee deposit is to cover costs associated with financial due diligence, marketing and lead generation, among other items. |
| Lease Payments (Note 9) | Approximately $22,000 to $38,000 base rent per month, plus triple net costs. This will vary as described in Note 9. | Base rent due on the 1st day of each month. Triple net costs are due as costs arise. | You will lease or sublease the premises (land and building) from CBAC or one of its affiliates. See Note 9 for the lease term. |
| IT Support Fee (Note 4) | As determined from time to time by CBAC and set forth in our Confidential Operations Manual. Currently, $200 per month for IT support services. | 1st day of each month. | This may include web hosting and software/hardware technical support. CBAC reserves the right to increase this fee, in its sole discretion. |
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 are currently required to pay $200 per month for IT support services. This fee is payable on the 1st day of each month. These IT support services may include web hosting and software/hardware technical support.
Christian Brothers Automotive retains the right to increase this IT support fee at its sole discretion, as stated in the FDD. This means that while the current fee is $200 per month, prospective franchisees should be aware that this amount could change over time. It is important to factor in potential fee increases when assessing the overall cost of operating a Christian Brothers Automotive franchise.
Franchisees should inquire about the specific factors that could trigger an increase in the IT support fee and how often these fees have been adjusted in the past. Understanding the potential for fee adjustments is a crucial part of financial planning for any franchise business.