When is the Royalty Fee payment due to Christian Brothers Automotive each month?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Continuing Royalty Fees (Note 2) | 50% of monthly “Split Profits” during the initial franchise term and during all extensions and renewals. | Estimated monthly amount due on the last day of each succeeding month. | The Royalty Fee is based on the “Split Profits” for the previous month. “Split Profits” are defined below in Note 2. |
Source: Item 6 — OTHER FEES (FDD pages 17–25)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the Royalty Fee is due on the last day of each succeeding month. The royalty fee is 50% of monthly "Split Profits" during the initial franchise term and during all extensions and renewals.
The Royalty Fee is based on the "Split Profits" for the previous month. Christian Brothers Automotive defines "Split Profits" as all monies, revenues, and items of value from all sources generated in connection with the Franchised Business, minus the Approved Expense Items.
This means that as a Christian Brothers Automotive franchisee, you will need to calculate your "Split Profits" each month and remit 50% of that amount to Christian Brothers Automotive by the last day of the following month. Franchisees should carefully review the definition of "Split Profits" and "Approved Expense Items" in the Franchise Agreement and Confidential Operations Manual to ensure accurate calculation and timely payment of the royalty fee.