To whom is the payment for insurance and business licenses 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 |
|---|---|---|---|---|
| INITIAL FRANCHISE FEE | $135,000 (Note 1) $121,500 with IFA VetFran Program Discount (Note 1) | a) $85,000 b) $50,000 With Discount: a) $85,000 b) $36,500 (Note 1) | a) See Note 1 b) See Note 1 | CBAC (Note 1) |
| REAL ESTATE AND IMPROVE- MENTS | $0 at |
Source: Item 7 — INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive FDD, payments for insurance and business licenses are made to insurance companies. The estimated cost for insurance and business licenses ranges from $15,000 to $60,000 per year. These payments are typically financed with monthly installments, although an initial cash deposit may be required depending on the insurance agent and carrier.
Christian Brothers Automotive requires franchisees to carry various forms of insurance, including workers' compensation, property/casualty, renter's coverage(s), errors and omissions, general liability, and life insurance (if required by the lender). The general liability business coverage must have limits of not less than $2,000,000. The actual premiums may vary based on factors such as projected volume, fees, loss history, and experience rate.
Prospective franchisees should factor these insurance costs into their initial investment and ongoing operational expenses. It is important to consult with multiple insurance providers to obtain competitive quotes and understand the specific coverage requirements for their Christian Brothers Automotive franchise. Additionally, if the franchisee is financing any aspect of their business, the lender may require additional insurance coverage, further impacting the overall cost.