When is the second installment of the franchise fee for Christian Brothers Automotive due?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay CBAC an initial franchise fee of $135,000 (the "Franchise Fee"). This Franchise Fee is paid in two installments. The first installment is in the amount of $85,000 (the "Down Payment") and is due at the earlier of your signing the Franchise Agreement or your signing the Receipt and Acknowledgement Letter Agreement (the "Letter Agreement"), a copy of which is attached as Exhibit H. The second installment is in the amount of $50,000 and is due 30 days
prior to receiving your Certificate of Occupancy, which is generally assumed to be approximately six weeks prior to store opening. If you are allowed to finance the second installment, depending on your personal circumstances and credit worthiness, it will be paid to CBAC upon the closing of your startup loan, which is typically closed 30 days prior to receiving your Certificate of Occupancy as this coincides with initial working capital needs. $13,500 of the Down Payment will be fully earned when paid and non-refundable in consideration of administrative and other expenses CBAC incurs and for lost or deferred opportunities to enter into the Franchise Agreement with others.
Source: Item 5 — INITIAL FEES (FDD pages 14–17)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the initial franchise fee is $135,000, paid in two installments. The first installment, or down payment, is $85,000 and is due upon signing the Franchise Agreement or the Receipt and Acknowledgement Letter Agreement.
The second installment of the franchise fee is $50,000. This installment is due 30 days prior to receiving the Certificate of Occupancy, which is generally assumed to be approximately six weeks before the store opens. This means a prospective franchisee needs to plan their finances to ensure they have the $50,000 available roughly 1.5 months before the anticipated opening date.
Christian Brothers Automotive may allow franchisees to finance the second installment, depending on their personal circumstances and creditworthiness. If financing is approved, the $50,000 is paid to Christian Brothers Automotive upon the closing of the startup loan. This typically occurs 30 days prior to receiving the Certificate of Occupancy, coinciding with initial working capital needs.
It is important to note that $13,500 of the initial $85,000 down payment is non-refundable. This portion covers Christian Brothers Automotive's administrative and other expenses, as well as lost or deferred opportunities to enter into franchise agreements with other parties.