What are the payment deadlines for the Christian Brothers Automotive Transfer Fee?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Marketing Fee – Regional Programs (Note 6) | Established by CBAC. You must pay CBAC your prorated portion of the costs of any regional marketing programs, subject to a Maximum Annual Cost. | Last business day of each month. | As of the date of this Disclosure Document, CBAC has established regional marketing programs. You must participate in the regional marketing programs for the region in which your automotive repair facility is located (each a "Regional Program"). If we operate an automotive repair facility located in a region in which a Regional Program has been established, we will participate in any applicable Regional Program on the same basis as franchisees. CBAC manages and approves all advertising, initiatives and promotions for any Regional Program. The Maximum Annual Cost shall apply to the National Program and any applicable Regional Program combined. You will begin paying the Marketing Fee – Regional Program after six months in operation. |
| Transfer Fee $30,000 (Note 7) | $30,000 | $10,000 is due upon our approval of the term sheet or letter of intent signed by you and the buyer, and the $20,000 balance is due upon the | Transfer fees are imposed by and payable to CBAC and are non-refundable. |
Source: Item 6 — OTHER FEES (FDD pages 17–25)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the transfer fee is $30,000. This fee is paid in two installments. The first installment of $10,000 is due upon Christian Brothers Automotive's approval of the term sheet or letter of intent signed by both the seller (franchisee) and the buyer. The remaining balance of $20,000 is due upon the closing of the sale. These fees are non-refundable.
It is important to note that these transfer fees are paid to Christian Brothers Automotive. These fees are separate from any transaction fees that may be applicable if the franchisee authorizes Christian Brothers Automotive to find a buyer on their behalf.
Prospective franchisees should be aware of these payment deadlines and factor them into their financial planning when considering the sale of their Christian Brothers Automotive franchise. Understanding the timing of these payments is crucial for managing cash flow during the transfer process.