Are signs an additional cost 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 |
|---|---|---|---|---|
| SIGNS | $0 (Note 5) | Provided through Franchisor and Real Estate Lease | ||
| 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 |
You must display and maintain a sign for your franchise.
CBAC will select the sign, the location for the sign and the company to build and install the sign.
The cost of this sign is included in your project cost or a construction loan.
All costs and expenses related to maintaining, repairing and/or replacing the sign will be your obligation on an ongoing basis throughout the term of your lease.
Source: Item 7 — INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive FDD, the initial cost of the sign for your franchise is included in your project cost or a construction loan. Christian Brothers Automotive will select the sign, its location, and the company responsible for building and installing it. This means that franchisees do not have to pay an additional fee for the initial sign, as it is factored into the overall project or construction expenses.
However, franchisees are responsible for all ongoing costs and expenses related to maintaining, repairing, and/or replacing the sign throughout the term of their lease. This includes any repairs needed due to damage or wear and tear, as well as the cost of replacing the sign if it becomes necessary. These maintenance and replacement costs are the franchisee's responsibility and must be budgeted for accordingly.
The table outlining the initial investment costs also reflects a $0 cost for signs, further confirming that the initial sign cost is covered through other means such as the project cost or construction loan. This can be a significant benefit for new franchisees as it reduces the upfront capital required to start the business. Franchisees should be aware of the ongoing maintenance responsibilities and factor those potential costs into their long-term financial planning.