What is the purpose of the Transaction Fee Agreement between Christian Brothers Automotive and the franchisee?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS TRANSACTION FEE AGREEMENT (this "Agreement") is made and entered into as of (the "Effective Date"), by and among (hereinafter "you" or "Franchisee") and Christian Brothers Automotive Corporation, a Texas corporation (hereinafter "we," "us," or "CBAC"). |
|---|
| INTRODUCTION |
| WHEREAS, we and you are parties to that certain "Franchise Agreement" dated on or |
| about ("Franchise Agreement"), pursuant to which you were granted the |
| license to develop and operate a Christian Brothers Automotive business (the "Business") located |
| at; |
| WHEREAS, you have developed and are now operating such Business; and |
| WHEREAS, you wish to sell the Business to a CBAC-approved buyer, and engage us to |
| assist in locating a potential buyer. |
| AGREEMENT |
| NOW THEREFORE, in consideration of the foregoing and other good and valuable |
| consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as |
| follows: |
| 1. |
| CBAC Sales Assistance. In return for the Transaction Fee (as defined below) we |
| agree to use commercially reasonable efforts to locate and/or assist you in locating a buyer. Our |
| efforts may consist of some or all of the following, but our efforts are not necessarily limited to |
| such: |
| a. |
| List the business on our national franchise site as an available opportunity. |
| b. |
| Market the business to our existing database. |
| c. |
| Provide a Seller's Manual to provide assistance in marketing and selling your |
| business. |
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the Transaction Fee Agreement outlines the terms under which Christian Brothers Automotive will assist a franchisee in selling their existing business. This agreement is initiated when a franchisee wishes to sell their Christian Brothers Automotive business to a buyer approved by Christian Brothers Automotive.
The core purpose of the agreement is to define the sales assistance that Christian Brothers Automotive will provide. In exchange for a Transaction Fee, Christian Brothers Automotive commits to using commercially reasonable efforts to help the franchisee locate a buyer. These efforts may include listing the business on Christian Brothers Automotive's national franchise site, marketing the business to their existing database of potential buyers, and providing a Seller's Manual to aid the franchisee in marketing and selling their business.
This agreement benefits the franchisee by providing access to Christian Brothers Automotive's resources and network to facilitate the sale of their business. However, it's important to note that Christian Brothers Automotive's efforts are not guaranteed to result in a sale. The agreement specifies that Christian Brothers Automotive will use "commercially reasonable efforts," but does not guarantee a successful outcome. The franchisee should carefully consider the terms of the agreement and the potential costs involved before engaging Christian Brothers Automotive's services to sell their franchise.