factual

Does Christian Brothers Automotive provide financial services to franchisees?

Christian_Brothers_Automotive Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee: _____________

Franchisor: Christian Brothers Automotive Corporation

(b) Administrative Fees. Franchisee agrees to pay fees to Franchisor for financial and

administrative services provided by Franchisor. The amount of the administrative

fees will be set out in the Confidential Operations Manual.

(c) IT Support Fee. Franchisor may provide Franchisee with information technology

("IT") support such as web hosting and software/hardware support in return for a

fee paid by Franchisee to Franchisor equal to an amount determined from time to

time by Franchisor, in its sole discretion, and set forth in the Confidential

Operations Manual. All fees paid in accordance with this Section are non-

refundable, and subject to change in Franchisor's sole discretion. Franchisor may

modify the IT support services it provides or discontinue the provision of such

services at any time.

(d) Software Fees. Franchisor may provide Franchisee with certain software, including,

without limitation, point-of-sale software, accounting software, and internet

failover software, in return for fees to be established in Franchisor's discretion and

set forth in the Confidential Operations Manual or otherwise in writing, and payable

by Franchisee. Related to the foregoing, Franchisor may further charge Franchisee

for annual licensing or maintenance fees established in Franchisor's discretion and

set forth in the Confidential Operations Manual or otherwise in writing, and payable

by Franchisee. All fees and charges paid in accordance with this Section 4.03(d)

are non-refundable, and subject to change in Franchisor's sole discretion.

Franchisor may modify any such software it provides or discontinue the provision

of such software at any time.

Franchise Agreement (Ver 04-14-2025)

Franchisee: _____________

Franchisor: Christian Brothers Automotive Corporation

4.04 Application of Funds. If Franchisee is delinquent in the payment of any obligation to

Source: Item 23 — RECEIPTS (FDD pages 76–372)

What This Means (2025 FDD)

According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Christian Brothers Automotive does not directly provide financial services or assistance to franchisees. However, franchisees are required to pay fees to Christian Brothers Automotive for financial and administrative services that the franchisor provides. The specific amount of these administrative fees are detailed in the Confidential Operations Manual, a document not included in the provided excerpts.

Christian Brothers Automotive may also offer franchisees information technology (IT) support, such as web hosting and software/hardware assistance, in exchange for a fee. The amount of this IT support fee is determined by Christian Brothers Automotive and is also specified in the Confidential Operations Manual. Additionally, Christian Brothers Automotive may provide franchisees with certain software, including point-of-sale, accounting, and internet failover software, for which fees and annual licensing or maintenance fees may be charged, as outlined in the Confidential Operations Manual or in writing.

Franchisees are obligated to grant Christian Brothers Automotive view-only access to all of their accounts at financial institutions and must supply financial information, records, reports, and supporting documentation as reasonably requested by Christian Brothers Automotive. If a franchisee is delinquent in their payment obligations to Christian Brothers Automotive, the franchisor has the right to apply funds received from the franchisee to any outstanding obligations. Furthermore, if an inspection or audit reveals that a franchisee has underpaid Christian Brothers Automotive, the franchisee is responsible for covering all associated costs, in addition to the owed amounts, along with an 18% annual interest and any applicable penalties.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.