Are the software fees paid to Christian Brothers Automotive refundable?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
(d) Software Fees. Franchisor may provide Franchisee with certain software, including, without limitation, point-of-sale software, accounting software, and internet failover software, in return for fees to be established in Franchisor's discretion and set forth in the Confidential Operations Manual or otherwise in writing, and payable by Franchisee. Related to the foregoing, Franchisor may further charge Franchisee for annual licensing or maintenance fees established in Franchisor's discretion and set forth in the Confidential Operations Manual or otherwise in writing, and payable by Franchisee. All fees and charges paid in accordance with this Section 4.03(d) are non-refundable, and subject to change in Franchisor's sole discretion. Franchisor may modify any such software it provides or discontinue the provision of such software at any time.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the software fees paid to Christian Brothers Automotive are non-refundable. Christian Brothers Automotive may provide franchisees with software such as point-of-sale, accounting, and internet failover software, in return for fees. Christian Brothers Automotive will establish these fees at its discretion and outline them in the Confidential Operations Manual or in writing. Franchisees may also be charged annual licensing or maintenance fees, which Christian Brothers Automotive will also determine and communicate in the Confidential Operations Manual or in writing.
This means that once a Christian Brothers Automotive franchisee pays these software or licensing fees, they cannot get a refund, regardless of the circumstances. This policy is subject to change at Christian Brothers Automotive's discretion, meaning the franchisor can modify the fees. Christian Brothers Automotive also retains the right to modify or discontinue the software provided at any time.
Prospective franchisees should carefully consider this non-refundable policy and factor it into their financial planning. It is important to fully understand the costs associated with the software and licensing fees and to evaluate the potential risks of changes or discontinuation of the software by Christian Brothers Automotive. Franchisees should also inquire about the typical frequency and magnitude of changes to these fees to better anticipate future expenses.