When is the second installment of the Christian Brothers Automotive initial franchise fee due?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
As indicated in Item 5, you must pay CBAC a Franchise Fee of $135,000. This Franchise Fee is paid in two installments. The first installment or Down Payment is in the amount of $85,000 and is due at the earlier of your signing the Franchise Agreement or your signing the Letter Agreement. 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 from your business loan proceeds upon the receipt of an invoice, typically delivered within 30 days of opening. $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.
Within 30 days of execution of the Letter Agreement, and before you sign the Franchise Agreement, CBAC will provide you with a Non-Use, Non-Disclosure and Non-Competition Agreement for execution. After you have signed the Non-Use, Non-Disclosure and Non-Competition Agreement, CBAC will provide you with credentials to access CBAC's proprietary and confidential training materials and Confidential Operations Manual.
CBAC agrees to identify Land (as defined below) for purchase and begin the process of negotiating a letter of intent for such purchase no later than one year following the date of the Letter Agreement.
Source: Item 7 — INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive FDD, the timing of the second franchise fee installment depends on whether the franchisee is financing it. For franchisees who are not financing, the $50,000 second installment is due 30 days prior to receiving the Certificate of Occupancy. The FDD notes that this is generally assumed to be approximately six weeks prior to the store opening.
For franchisees who are financing the second installment, the $50,000 is paid to Christian Brothers Automotive from the franchisee's business loan proceeds upon receipt of an invoice. This invoice is typically delivered within 30 days of opening.
For veterans who qualify for the IFA VetFran Program discount, the second installment is $36,500.00 and is due on or before three business days after Christian Brothers Automotive informs the franchisee in writing that building permits have been obtained, the land has been purchased, or the land has been leased for the building where the franchise will operate, unless the franchisee is allowed to finance the second installment. In that case, it will be paid to Christian Brothers Automotive from the business loan proceeds upon receipt of an invoice, typically delivered within 30 days of opening.
The initial franchise fee is $135,000, and the first installment or down payment is $85,000, due at the earlier of signing the Franchise Agreement or the Letter Agreement.