What is the total amount of the Down Payment for a Christian Brothers Automotive franchise?

According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, a prospective franchisee must pay a down payment of $85,000 towards the initial franchise fee upon executing the Receipt and Acknowledgement Letter Agreement. This agreement documents the understanding between the franchisee and Christian Brothers Automotive as the franchisee moves towards signing the full Franchise Agreement at a later date. The franchise will be located in a specific Metropolitan Statistical Area. Christian Brothers Automotive is responsible for identifying and purchasing land or acquiring an existing business for the franchise location.

Of the $85,000 down payment, $13,500 is non-refundable. This portion covers administrative and other expenses that Christian Brothers Automotive incurs during the process, as well as compensation for lost or deferred opportunities to enter into franchise agreements with other potential franchisees. This non-refundable aspect is a critical consideration for prospective franchisees, as it represents a financial risk if the deal does not proceed to the full Franchise Agreement.

This down payment structure is not uncommon in franchising, as it provides the franchisor with capital to begin the site selection and development process while also ensuring the franchisee's commitment. However, the non-refundable portion is something that prospective franchisees should carefully evaluate and understand before signing the Receipt and Acknowledgement Letter Agreement. It is important to clarify what specific services and expenses the $13,500 covers and what recourse the franchisee has if Christian Brothers Automotive fails to fulfill its obligations.