To whom are security deposits paid 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 paid to local utility companies prior to opening the franchised business. This lump sum payment covers initial utility setup costs.
It's important to note that while the FDD provides this estimate, the actual amount may vary depending on the specific location and the requirements of the local utility companies. Christian Brothers Automotive advises prospective franchisees to contact these companies directly to determine the exact amounts and acceptable methods of payment.
While a security deposit for real estate is not anticipated at startup for new Christian Brothers Automotive locations, this is subject to change based on the financial terms negotiated for each construction project. Franchisees should confirm these details during their due diligence process to understand the potential costs involved in establishing their business.