factual

What is Christian Brothers Automotive's obligation regarding the provision of signage for my franchise?

Christian_Brothers_Automotive Franchise · 2025 FDD

Answer from 2025 FDD Document

We have the following obligations to you before you open your automotive repair facility for business:

    1. CBAC will select a site for your franchise business and present it to you for your approval. In selecting the site, CBAC considers such factors as demographics, access, traffic, competition, visibility, natural and man-made boundaries and existing customer base. CBAC or an entity affiliated with CBAC will purchase the site and construct the building to be leased to your franchise. If an affiliate of CBAC purchases the site and constructs the building that will be used for your franchise, CBAC will lease the site and building from that affiliate and will sublease the site and building to you. If CBAC purchases the site and constructs the building, CBAC will lease the building and land to you. You will have options to extend the lease for three consecutive five-year periods subject to the conditions referred to in Item 17 and contained in the Franchise Agreement. If you finance any acquisition or operational aspect of your franchise business you will incur application fees, loan fees, closing costs and other related financing costs. CBAC may alternately lease the facility from an unaffiliated third party instead of purchasing directly, as mentioned in Note 2 to Item 7. (Section 9.05).
    1. CBAC will construct the premises and direct you in selecting the decorations for the premises. (Item 7, Note 2 and Section 9.05).
    1. Signage will be provided as part of the project cost. You are required to purchase all other fixtures, equipment and office furniture. CBAC will furnish you with specifications for those fixtures, equipment and office furniture. (Item 7, Notes 3 and 4 and Section 9.05).
    1. CBAC will assist and consult with you as you recruit and train at least one Service Manager and three technicians. All final hire decisions are made by you, as CBAC will only make recommendations when consulted. CBAC will provide required direct training for your Service Manager. You will be responsible for hiring all your employees. During training you will be provided a template for an Employee Handbook/Manual, which is purely a recommendation and not a mandatory document. You are responsible for the enforcement of your employment policies (Section 9.03). It is strongly recommended that you have a local employment law attorney review

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 40–52)

What This Means (2025 FDD)

According to the 2025 Christian Brothers Automotive FDD, signage is provided as part of the project cost when establishing a franchise. Christian Brothers Automotive will select the site for the franchise, considering factors like demographics, traffic, and competition, and present it to the franchisee for approval. Christian Brothers Automotive, or an affiliated entity, will purchase the site and construct the building, which will then be leased to the franchisee.

Christian Brothers Automotive will construct the premises and direct the franchisee in selecting decorations. While signage is included in the project cost, the franchisee is responsible for purchasing all other fixtures, equipment, and office furniture, with Christian Brothers Automotive providing the specifications for these items.

This arrangement means that a prospective Christian Brothers Automotive franchisee will not have to bear the initial cost of the signage for their location, as it is factored into the overall project expenses handled by Christian Brothers Automotive. However, the franchisee will need to budget for all other necessary fixtures, equipment, and furniture according to the specifications provided by Christian Brothers Automotive.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.