What is the non-refundable deposit required when signing the Christian Brothers Automotive Franchise Resale Agreement?

According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, when signing the Transaction Fee Agreement related to a franchise resale, the franchisee agrees to pay a non-refundable deposit. This deposit is the greater of $10,000 or 1% of the listed price of the business. This deposit is due at the time the franchisee signs the agreement.

This deposit is non-refundable, meaning that under most circumstances, the franchisee will not get this money back, even if the sale does not go through. However, the deposit is not an additional fee; it will be applied to the Transaction Fee at the closing of the transaction. The Transaction Fee itself is the greater of 7% of the gross value of the business transaction or $50,000.

It is important for prospective franchisees to understand that this deposit is a sunk cost. They should carefully consider their financial situation and the likelihood of the resale transaction completing before signing the agreement and paying the deposit. Franchisees should also clarify with Christian Brothers Automotive under what specific conditions, if any, the deposit might be refunded, even though the agreement states it is non-refundable.