When are other payments due 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 startup, but monthly thereafter (Note 1 and Note 2) | Monthly rent | First day of the month | CBAC |
| 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) |
| SHUTTLE VEHICLE | $30,000 to $50,000 (Note 4) | Auto finance/Lease program | Prior to opening Franchised Business | Dealership vendor/individual seller |
| SHUTTLE VEHICLE WRAP | $1,750 to $3,400 (Note 4) | Auto finance/Lease program | Prior to opening Franchised Business | Third party wrap vendor |
| INVENTORY | $11,000 to $12,000 (Note 6) | Cash As Purchased | Prior to opening and then as needed | Suppliers |
| SECURITY DEPOSITS | $5,000 (Note 7) | Lump Sum | Prior to opening Franchised Business | Local utility companies |
| SIGNS | $0 (Note 5) | Provided through Franchisor and Real Estate Lease | ||
| 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 |
| INSURANCE & BUSINESS LICENSE | $15,000 to $60,000 (Note 8) | Per Agreement with Insurance Companies | Can be prior to opening Franchised Business but is usually financed with a monthly payment | Insurance Companies |
| MARKETING/ ADVERTISING | $35,000 to $40,000 incurred during your first year in business (Note 9) | When required by Advertising Suppliers | Start-up, monthly, or otherwise, per agreement with advertisers | Advertisers and Suppliers |
| NEW STORE OPENING MARKETING/ ADVERTISING | $20,000 to $30,000 (Note 10) | By Advertising suppliers | Starting 90 days prior to store opening until 60 days after store opening | Advertisers and Suppliers |
| PRE-OPENING TRAINING TRAVEL/ SALARY | $7,500 to $10,000 (travel for training) (Note 11) | General travel expenses such as flight, rental car, hotel and food costs for approximately 45-60 days. | Starting approximately 90 days prior to store opening and will be needed for a period of approximately 45- 60 days. |
Source: Item 7 — INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive FDD, franchisees will encounter several other payments due at various times. Equipment, furniture, and software costs, estimated between $255,000 and $280,000, are due prior to opening the franchised business upon receipt of an invoice from equipment vendors or Christian Brothers Automotive. A shuttle vehicle, costing between $30,000 and $50,000, is due prior to opening and is typically secured through an auto finance/lease program with a dealership vendor or individual seller. The shuttle vehicle wrap, ranging from $1,750 to $3,400, is also due prior to opening and paid to a third-party wrap vendor, often financed with the vehicle. Inventory, estimated between $11,000 and $12,000, is due prior to opening and then as needed, paid to suppliers. Security deposits of approximately $5,000 are due prior to opening to local utility companies. Insurance and business licenses, estimated between $15,000 and $60,000 annually, are typically financed with monthly payments, though an initial cash deposit may be required.
Marketing and advertising expenses are also a factor. Franchisees should budget between $35,000 and $40,000 per year for marketing and advertising, with payments due when required by advertising suppliers. Additionally, new store opening marketing and advertising costs range from $20,000 to $30,000, starting 90 days prior to store opening and continuing until 60 days after opening. Pre-opening training travel and salary expenses, estimated between $7,500 and $10,000, are due starting approximately 90 days prior to store opening and needed for about 45-60 days, covering travel expenses and potentially a salary. Other payments, ranging from $5,000 to $15,000, are due prior to applying for commercial financing and cover miscellaneous expenses. Finally, franchisees should anticipate additional funds of $30,000 to $40,000 during the initial three months of operations for general operational expenses.
Prospective Christian Brothers Automotive franchisees should carefully review these payment schedules and amounts to ensure they have sufficient capital and financing in place. The timing of these payments is crucial, as many are required before the business even opens. Understanding when each payment is due and to whom it is owed will help franchisees manage their cash flow effectively during the initial startup phase. It is also important to note that some costs, such as marketing and advertising, are ongoing and must be factored into the long-term financial planning of the franchise. The FDD also mentions software costs of approximately $1,650 upfront and $10,500 annually, plus data overages, which are subject to change based on vendor pricing.