How often is the Christian Brothers Automotive Continuing Royalty Fee estimated to be due?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Continuing Royalty Fees (Note 2) | 50% of monthly “Split Profits” during the initial franchise term and during all extensions and renewals. | Estimated monthly amount due on the last day of each succeeding month. | The Royalty Fee is based on the “Split Profits” for the previous month. “Split Profits” are defined below in Note 2. |
Source: Item 6 — OTHER FEES (FDD pages 17–25)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the Continuing Royalty Fee is estimated to be due monthly. Specifically, the estimated monthly amount is due on the last day of each succeeding month.
The Continuing Royalty Fee is 50% of monthly "Split Profits" during the initial franchise term and during all extensions and renewals. The royalty fee is based on the "Split Profits" for the previous month.
Christian Brothers Automotive calculates a final reconciliation at each year-end for a "true up" on the annual "Split Profits". This means that while the royalty fee is paid monthly based on estimated profits, the actual amount owed for the entire year is calculated at the end of the year, and any overpayment or underpayment is corrected at that time. This is a fairly standard practice in franchising, as it allows the franchisor to collect royalties regularly while ensuring that the total amount paid is accurate.