What options does Christian Brothers Automotive provide if it declines to purchase land?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
CBAC may not be able to purchase Land that you approve and CBAC has agreed to attempt to acquire. CBAC has the right to decline to purchase any Land for any reason whatsoever. CBAC agrees to notify you in writing if it determines, for any reason, that it will not purchase the Land. CBAC will then give you the option of either (a) choosing another location where CBAC is willing to attempt to acquire Land where your franchise will operate, or (b) terminating your relationship with CBAC and having your Down Payment (minus the $13,500 portion which is non-refundable) refunded to you.
Source: Item 5 — INITIAL FEES (FDD pages 14–17)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, if Christian Brothers Automotive declines to purchase land that a franchisee approves, it will notify the franchisee in writing. At that point, the franchisee has two options.
First, the franchisee can choose another location where Christian Brothers Automotive is willing to attempt to acquire land for the franchise. This allows the franchisee to continue pursuing the franchise opportunity in a different location that is acceptable to both parties.
Second, the franchisee can terminate their relationship with Christian Brothers Automotive. In this case, Christian Brothers Automotive will refund the franchisee's down payment, minus $13,500, which is non-refundable. This provides an exit strategy for the franchisee if a suitable location cannot be found. This is a fairly standard practice in franchising, as site selection is a critical component of success, and disagreements can arise. Franchisees should carefully consider these options and their potential financial implications before making a decision.