What is the total Franchise Fee that the Down Payment will be applied to for a Christian Brothers Automotive franchise?

According to the 2025 Christian Brothers Automotive FDD, a franchisee will pay $85,000 as a down payment of the initial franchise fee. This down payment is made upon the execution of the Receipt and Acknowledgement Letter Agreement.

Christian Brothers Automotive is in the process of identifying and purchasing land or acquiring an existing business for the franchisee's location. The down payment allows Christian Brothers Automotive to proceed with these actions. The land will be used for constructing a building and other improvements necessary for operating the franchise. An existing business refers to an operating Christian Brothers Automotive franchise in the general market of the location.

It is important to note that $13,500 of the $85,000 down payment is non-refundable. This portion covers administrative and other expenses incurred by Christian Brothers Automotive, as well as compensation for lost or deferred opportunities to enter into franchise agreements with other potential franchisees. This non-refundable aspect should be carefully considered by prospective franchisees.

This arrangement, where a portion of the initial franchise fee is paid upfront and a part of it is non-refundable, is not uncommon in the franchise industry. It helps the franchisor cover initial costs and ensures the franchisee's commitment. However, the specific amounts and refund policies can vary significantly between different franchise systems, so it is crucial for potential franchisees to understand these terms before signing any agreements.