Are the IT support fees paid to Christian Brothers Automotive refundable?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) IT Support Fee. Franchisor may provide Franchisee with information technology ("IT") support such as web hosting and software/hardware support in return for a fee paid by Franchisee to Franchisor equal to an amount determined from time to time by Franchisor, in its sole discretion, and set forth in the Confidential Operations Manual. All fees paid in accordance with this Section are non- refundable, and subject to change in Franchisor's sole discretion. Franchisor may modify the IT support services it provides or discontinue the provision of such services 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, IT support fees are non-refundable. Christian Brothers Automotive may provide franchisees with IT support, including web hosting and software/hardware assistance. In return, the franchisee pays a fee to Christian Brothers Automotive. The amount of this fee is determined by Christian Brothers Automotive at its discretion and is detailed in the Confidential Operations Manual.
This means that once a Christian Brothers Automotive franchisee pays the IT support fee, they cannot get a refund, regardless of whether they use the IT support services or if the services are interrupted. The fees are also subject to change at Christian Brothers Automotive's discretion, so the cost of IT support could increase over time. Christian Brothers Automotive also retains the right to modify or discontinue the IT support services it provides at any time.
This policy is fairly common in franchising, where franchisors often charge fees for various services and retain the right to modify or discontinue those services. Prospective Christian Brothers Automotive franchisees should carefully consider the potential costs and benefits of the IT support services before agreeing to pay the associated fees, understanding that these fees are non-refundable and subject to change.
It would be prudent for a potential franchisee to discuss the specifics of the IT support services, typical fee amounts, and any historical changes to these fees with existing Christian Brothers Automotive franchisees to gain a clearer understanding of the potential costs and benefits.