To whom is the payment for equipment, furniture, and software made 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 the 2025 Christian Brothers Automotive Franchise Disclosure Document, the payment for equipment, furniture, and software, which ranges from $255,000 to $280,000, is made to either equipment vendors or directly to Christian Brothers Automotive (CBAC). The payment is due prior to opening the franchised business upon receipt of an invoice.
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 means franchisees benefit from the franchisor's bulk purchasing power and logistical coordination.
Prospective franchisees should confirm with Christian Brothers Automotive which specific items must be purchased from them versus directly from vendors. Understanding the payment process and vendor relationships is crucial for managing the initial investment and ensuring a smooth opening.