When are security deposits due for a Christian Brothers Automotive franchise?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type Of Expenditure | Amount (Note 13, 16 and 17) | Method Of Payment (Note 14 And 15) | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| INITIAL FRANCHISE FEE | $135,000 (Note 1) $121,500 with IFA VetFran Program Discount (Note 1) | a) $85,000 b) $50,000 With Discount: a) $85, |
Source: Item 7 — INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, security deposits, estimated at $5,000, are due prior to opening the franchised business. These deposits are paid as a lump sum to local utility companies.
Prospective franchisees should contact local utility companies to determine the specific amounts and methods of payment for these security deposits. This is a standard practice in franchising, as franchisees are typically responsible for setting up and paying for their own utilities.
While Christian Brothers Automotive does not anticipate requiring a security deposit at startup for new stores and generally attempts to provide up to a six-month rent-free period, this is subject to change and will vary depending on the financial terms negotiated on each construction project. Franchisees should confirm the current policy with Christian Brothers Automotive during their due diligence.