When is payment due for equipment, furniture, and software for a Christian Brothers Automotive franchise?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type Of Expenditure | Amount (Note 13, 16 and 17) | Method Of Payment (Note 14 And 15) | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| EQUIPMENT, FURNITURE AND SOFTWARE | $255,000 to $280,000 (Note 3) | Cash As Purchased, invoiced by CBAC | Prior to opening Franchised Business, upon receipt of invoice | Equipment Vendors and/or CBAC (Note 3) |
- Prior to opening, you must purchase certain equipment, furniture and software from CBAC that will be used to operate the franchise. This will include the equipment listed in our Confidential Operations Manual and the software described below, at a current total cost of approximately $255,000 to $280,000. We may add or delete items to be purchased from or through us, or vendors from whom they must be purchased at any time. The equipment is purchased by us in order to obtain better pricing than individual purchasers could obtain, mitigate supply chain risk, and coincide with construction timelines. All equipment purchases will be rebilled to you at our cost, including any associated fees from the vendor.
Source: Item 7 — INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, payment for equipment, furniture, and software, which ranges from $255,000 to $280,000, is due prior to opening the franchised business. The payment is expected upon receipt of an invoice from either equipment vendors or Christian Brothers Automotive itself. This upfront investment is a significant consideration for prospective franchisees.
Christian Brothers Automotive purchases the equipment to obtain better pricing, mitigate supply chain risks, and align with construction timelines. All equipment purchases will be rebilled to the franchisee at cost, including any associated vendor fees. This arrangement suggests that franchisees will not be able to source their own equipment independently, ensuring standardization and potentially leveraging the franchisor's buying power.
Prospective franchisees should carefully review the list of required equipment, furniture, and software in the Confidential Operations Manual to fully understand this substantial initial investment. They should also confirm with Christian Brothers Automotive whether there are any financing options available for this portion of the initial investment, as it represents a major expense prior to the commencement of operations.