Is Christian Brothers Automotive required to purchase the site and construct the building for my franchise?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
CBAC will select a site for your franchise business and present it to you for your approval. In selecting the site, CBAC considers such factors as demographics, access, traffic, competition, visibility, natural and man-made boundaries and existing customer base. CBAC or an entity affiliated with CBAC will purchase the site and construct the building to be leased to your franchise. If an affiliate of CBAC purchases the site and constructs the building that will be used for your franchise, CBAC will lease the site and building from that affiliate and will sublease the site and building to you. If CBAC purchases the site and constructs the building, CBAC will lease the building and land to you. You will have options to extend the lease for three consecutive five-year periods subject to the conditions referred to in Item 17 and contained in the Franchise Agreement. If you finance any acquisition or operational aspect of your franchise business you will incur application fees, loan fees, closing costs and other related financing costs. CBAC may alternately lease the facility from an unaffiliated third party instead of purchasing directly, as mentioned in Note 2 to Item 7. (Section 9.05).
-
- CBAC will construct the premises and direct you in selecting the decorations for the premises. (Item 7, Note 2 and Section 9.05).
-
- Signage will be provided as part of the project cost. You are required to purchase all other fixtures, equipment and office furniture. CBAC will furnish you with specifications for those fixtures, equipment and office furniture. (Item 7, Notes 3 and 4 and Section 9.05).
-
- CBAC will assist and consult with you as you recruit and train at least one Service Manager and three technicians. All final hire decisions are made by you, as CBAC will only make recommendations when consulted. CBAC will provide required direct training for your Service Manager. You will be responsible for hiring all your employees. During training you will be provided a template for an Employee Handbook/Manual, which is purely a recommendation and not a mandatory document. You are responsible for the enforcement of your employment policies (Section 9.03). It is strongly recommended that you have a local employment law attorney review
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 40–52)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, Christian Brothers Automotive or an affiliated entity typically purchases the site and constructs the building for your franchise location. Following this, the company will lease the site and building to you. If an affiliate makes the purchase and constructs the building, Christian Brothers Automotive will lease from the affiliate and then sublease to you. Alternatively, Christian Brothers Automotive may lease the facility from an unaffiliated third party.
As a franchisee, you will have the option to extend the lease for three consecutive five-year periods, subject to conditions outlined in Item 17 and the Franchise Agreement. If you require financing for any aspect of your franchise, such as acquisition or operations, you will be responsible for all associated fees, including application, loan, and closing costs.
Christian Brothers Automotive will also construct the premises and guide you in selecting decorations. Signage is included as part of the project cost. However, you are responsible for purchasing all other fixtures, equipment, and office furniture, with Christian Brothers Automotive providing the specifications for these items. Christian Brothers Automotive will also assist you in recruiting and training at least one Service Manager and three technicians, though you will make the final hiring decisions.