Under what conditions can the second installment of the Christian Brothers Automotive franchise fee be financed?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 5 — INITIAL FEES (FDD pages 14–17)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, the second installment of the franchise fee, amounting to $50,000, can be financed under specific conditions. Whether a franchisee is allowed to finance this second installment depends on their personal circumstances and creditworthiness. If financing is permitted, the $50,000 is paid to Christian Brothers Automotive upon the closing of the franchisee's startup loan. This typically occurs about 30 days before the franchisee receives their Certificate of Occupancy, aligning with their initial working capital needs.
This arrangement benefits both the franchisee and Christian Brothers Automotive. It allows franchisees who may not have immediate access to $50,000 to still proceed with opening their location, provided they meet the creditworthiness criteria. For Christian Brothers Automotive, it ensures that the franchise fee is paid in a timely manner, coinciding with the franchisee's readiness to begin operations.
Prospective franchisees should carefully consider their financial situation and credit history to determine if they will qualify for financing of the second installment. They should also discuss financing options with Christian Brothers Automotive to understand the specific requirements and procedures involved. Understanding these conditions is crucial for planning the financial aspects of opening a Christian Brothers Automotive franchise.