What does the Christian Brothers Automotive Step-In Rights Management Fee cover?

Question

Accepted Answer

| Type of Fee (Note 1)          | Amount                                                                                                                                                                                                                                                                              | Due Date                                                                    | Remarks                                                                                                                                                                                                         |
|----------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Liquidated Damages            | An amount equal to the average of the monthly Royalty Fees paid (or payable) over the past 12 months times the lesser of 48 months or the number of full calendar months remaining in the term of the Franchise Agreement at the time of termination. | Upon demand at time of termination of your Franchise Agreement. | Payable if we terminate your Franchise Agreement for violation of your confidentiality or non compete obligations. See Section 15.09 of the Franchise Agreement.                              |
| Step-In Rights Management Fee | \$5,000 per month, plus reasonable compensation and expenses for our representatives (including an Interim Manager), plus other reasonable costs and expenses incurred in return for managing the Franchised Business.                                   | Upon demand.                                                                | See Note 10.                                                                                                                                                                                                    |
| Renewal Fee                      | 10% of the initial franchise fee paid for the most recently sold franchise at the time of renewal.                                                                                                                                                                      |                                                                             | The Franchise Agreement may be renewed after an initial term of 15 years for 3 consecutive terms of 5 years each. You will only need to pay this fee if you renew the Franchise Agreement. |

Source: Item 6 — OTHER FEES (FDD pages 17–25)

What does the Christian Brothers Automotive Step-In Rights Management Fee cover?

Answer from 2025 FDD Document

What This Means (2025 FDD)

Type of Fee (Note 1)	Amount	Due Date	Remarks
Liquidated Damages	An amount equal to the average of the monthly Royalty Fees paid (or payable) over the past 12 months times the lesser of 48 months or the number of full calendar months remaining in the term of the Franchise Agreement at the time of termination.	Upon demand at time of termination of your Franchise Agreement.	Payable if we terminate your Franchise Agreement for violation of your confidentiality or non compete obligations. See Section 15.09 of the Franchise Agreement.
Step-In Rights Management Fee	$5,000 per month, plus reasonable compensation and expenses for our representatives (including an Interim Manager), plus other reasonable costs and expenses incurred in return for managing the Franchised Business.	Upon demand.	See Note 10.
Renewal Fee	10% of the initial franchise fee paid for the most recently sold franchise at the time of renewal.		The Franchise Agreement may be renewed after an initial term of 15 years for 3 consecutive terms of 5 years each. You will only need to pay this fee if you renew the Franchise Agreement.