Under what conditions are transfer fees collectable for a Christian Brothers Automotive franchise transfer?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, you wish to sell the Business to a CBAC-approved buyer, and engage us to assist in locating a potential buyer. AGREEMENT NOW THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. CBAC Sales Assistance. In return for the Transaction Fee (as defined below) we agree to use commercially reasonable efforts to locate and/or assist you in locating a buyer. Our efforts may consist of some or all of the following, but our efforts are not necessarily limited to such: a. List the business on our national franchise site as an available opportunity. b. Market the business to our existing database. c. Provide a Seller's Manual to provide assistance in marketing and selling your business.
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document (FDD) for Christian Brothers Automotive outlines the conditions under which a transaction fee is collected when a franchisee wishes to sell their business. According to Item 22, if a franchisee wants to sell their Christian Brothers Automotive business to a CBAC-approved buyer and engages Christian Brothers Automotive to assist in locating a potential buyer, a transaction fee is applicable.
Christian Brothers Automotive's assistance in this process may include listing the business on their national franchise site, marketing the business to their existing database, and providing a Seller's Manual to aid in marketing and selling the business. The transaction fee is collected in return for these efforts to locate and assist the franchisee in finding a buyer.
This arrangement benefits both the franchisee and Christian Brothers Automotive. The franchisee receives assistance in selling their business, potentially reaching a wider pool of buyers through Christian Brothers Automotive's resources. Christian Brothers Automotive, in turn, collects a transaction fee for providing these services. Prospective franchisees should inquire about the specific amount and terms of the transaction fee to fully understand the costs associated with selling their franchise in the future.