What is the total initial franchise fee for a Christian Brothers Automotive franchise?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay CBAC an initial franchise fee of $135,000 (the "Franchise Fee"). This Franchise Fee is paid in two installments. The first installment is in the amount of $85,000 (the "Down Payment") and is due at the earlier of your signing the Franchise Agreement or your signing the Receipt and Acknowledgement Letter Agreement (the "Letter Agreement"), a copy of which is attached as Exhibit H. The second installment is in the amount of $50,000 and is due 30 days
prior to receiving your Certificate of Occupancy, which is generally assumed to be approximately six weeks prior to store opening. If you are allowed to finance the second installment, depending on your personal circumstances and credit worthiness, it will be paid to CBAC upon the closing of your startup loan, which is typically closed 30 days prior to receiving your Certificate of Occupancy as this coincides with initial working capital needs. $13,500 of the Down Payment will be fully earned when paid and non-refundable in consideration of administrative and other expenses CBAC incurs and for lost or deferred opportunities to enter into the Franchise Agreement with others.
Within 30 days of you and CBAC's execution of the Letter Agreement, and before you sign the Franchise Agreement, CBAC will provide you with a Non-Use, Non-Disclosure and Non-Competition Agreement, a copy of which is attached as Exhibit F, for execution. After you have signed the Non-Use, Non-Disclosure and Non-Competition Agreement, CBAC will provide you with credentials to access CBAC's proprietary and confidential training materials and Confidential Operations Manual.
CBAC is a proud participant of the International Franchise Association's Veterans Transition Franchise Initiative and has established the following "IFA VetFran Program." If you are a current or former member of the United States Armed Forces and have been or will be honorably discharged then CBAC offers you a discount of 10% of the Franchise Fee.
Source: Item 5 — INITIAL FEES (FDD pages 14–17)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the initial franchise fee is $135,000. This fee is paid in two installments. The first installment, a down payment of $85,000, is due upon signing the Franchise Agreement or the Receipt and Acknowledgement Letter Agreement. The second installment of $50,000 is due 30 days prior to receiving the Certificate of Occupancy, typically around six weeks before the store opens.
The FDD outlines specific conditions regarding the refundability of the down payment. $13,500 of the initial $85,000 down payment is non-refundable to cover Christian Brothers Automotive's administrative and other expenses, as well as lost opportunities. If a 'Termination Event' occurs after Christian Brothers Automotive has executed a contract, the entire $85,000 down payment is non-refundable. A Termination Event includes failing to qualify for financing, choosing not to proceed with opening the franchise, or being unable to fulfill other obligations.
Christian Brothers Automotive offers a discount on the franchise fee to veterans through the IFA VetFran Program. Current or former members of the United States Armed Forces who have been honorably discharged are eligible for a 10% discount on the Franchise Fee. This discount is applied to the second installment of the Franchise Fee upon receipt of the DD Form 214 "Certificate of Release or Discharge from Active Duty."
Prospective franchisees should carefully consider these terms, especially the conditions under which the initial fees are non-refundable. Understanding the timeline for payments and the requirements for obtaining a Certificate of Occupancy is also crucial for financial planning. Additionally, veterans should ensure they provide the necessary documentation to take advantage of the VetFran discount.