When is the Christian Brothers Automotive IT Support Fee due?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| closing of the sale. | |||
| Transaction Fee (Note 8) | The greater of 7% of the gross value of the business transaction or $50,000, payable as follows: (i) a non refundable deposit equal to the greater of $10,000 or 1% of the listed price of the Franchised Business paid when you sign our Transaction Fee Agreement, and (ii) the balance of the transaction fee is payable upon the closing of the transaction between you and the buyer. | Due upon closing of your selling transaction, except for the initial payment of the greater of $10,000 or 1% of the listed price of the Franchised Business. | If you authorize CBAC to find you a buyer or CBAC provides you a buyer from its interested candidates. This transaction fee is in addition to the above described transfer fees. The transaction fee is non refundable. The transaction fee deposit is to cover costs associated with financial due diligence, marketing and lead generation, among other items. |
| Lease Payments (Note 9) | Approximately $22,000 to $38,000 base rent per month, plus triple net costs. This will vary as described in Note 9. | Base rent due on the 1st day of each month. Triple net costs are due as costs arise. | You will lease or sublease the premises (land and building) from CBAC or one of its affiliates. See Note 9 for the lease term. |
| IT Support Fee (Note 4) | As determined from time to time by CBAC and set forth in our Confidential Operations Manual. Currently, $200 per month for IT support services. | 1st day of each month. | This may include web hosting and software/hardware technical support. CBAC reserves the right to increase this fee, in its sole discretion. |
Source: Item 6 — OTHER FEES (FDD pages 17–25)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the IT Support Fee is due on the 1st day of each month. The current fee is $200 per month for IT support services, but Christian Brothers Automotive reserves the right to increase this fee at its sole discretion. This fee may cover web hosting and software/hardware technical support.
Franchisees should be aware that this monthly fee contributes to the ongoing operational costs of running a Christian Brothers Automotive franchise. It is essential to factor this expense into their monthly budget and financial projections. The fact that Christian Brothers Automotive retains the right to increase this fee is also important, as it introduces a degree of uncertainty into long-term financial planning. Franchisees should inquire about the historical frequency and magnitude of such increases to better anticipate potential future costs.
Many franchisors charge ongoing technology fees to cover the costs of providing technical support, software updates, and other IT-related services. The specific amount and frequency of these fees can vary widely depending on the franchise system and the level of support provided. It is a common practice for franchisors to reserve the right to adjust these fees as needed to reflect changes in technology costs or service offerings. Prospective franchisees should carefully review the FDD and ask detailed questions about all ongoing fees to fully understand their financial obligations.
In summary, the IT Support Fee for Christian Brothers Automotive is a recurring monthly expense that franchisees must budget for. While the current fee is $200 per month, franchisees should be prepared for potential increases and should inquire about the factors that could trigger such adjustments.