In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Christian Brothers Automotive franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Christian Brothers Automotive franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Christian Brothers Automotive outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Christian Brothers Automotive franchise opportunity

Section V – Presentation and analysis of Christian Brothers Automotive’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average gross sales for the 265 CBA franchisee-owned stores that were open for the entire year of 2023, based upon the following indicated sales ranges: greater than $4.5M, $4M to 4.5M, $3.5M to $4M, $3M to $3.5M, $2.5M to $3M, $2.25M to $2.5M, $2M to $2.25M, $1.75M to $2M, $1.5M to $1.75M, and less than $1.5M

• average gross sales, cost of goods sold, gross profit, general and administrative expenses, net operating income, and total owner benefit for 1 year old, 2 year old, 3 year old, 4 year old, and 5+ year old CBA franchisee-owned stores for the year ending December 31, 2023

• 2023 average, median, low, and high total owner benefit for the top 20% total owner benefit performers (53 stores), bottom 20% total owner benefit performers (53 stores), and all 265 CBA franchisee-owned stores that were open for the entire year of 2023

• 2023 average, median, low, and high shop labor rate for the 265 CBA franchisee-owned stores that were open for the entire year of 2023

• 2023 average, median, low, and high annual car count for the 265 CBA franchisee-owned stores that were open for the entire year of 2023

Section VI – Key ratios, comparables, computations, and analyses for the Christian Brothers Automotive franchise opportunity (exclusive content for Platinum subscribers)

Section I – Christian Brothers Automotive Franchise Costs

• Initial Franchise Fee:  $135,000 ($121,500 with IFA VetFran Program Discount)
• Real Estate and Improvements:  $0 at startup, but monthly thereafter
• Equipment, Furniture, and Software:  $255,000 to $280,000
• Shuttle Vehicle:  $30,000 to $50,000
• Shuttle Vehicle Wrap:  $1,750 to $3,400
• Inventory:  $11,000 to $12,000
• Security Deposits:  $5,000
• Signs:  $0
• Insurance and Business License:  $15,000 to $45,000
• Marketing/Advertising:  $20,000 to $30,000 incurred during your first year in business
• New Store Opening Marketing/Advertising:  $15,000 to $20,000
• Pre-Opening Training Travel/Salary:  $7,500 to $10,000
• Other Payments:  $5,000 to $15,000
• Additional Funds During Initial 3 Months:  $30,000 to $40,000
• Total Estimated Christian Brothers Automotive Franchise Costs:  $530,250 to $645,400

Section II – Christian Brothers Automotive’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $135,000

• Continuing Royalty Fees:  50% of monthly “Split Profits” during the initial franchise term and during all extensions and renewals

• Marketing Fee – National Program:  established by Christian Brothers Automotive. You must pay Christian Brothers Automotive your prorated portion of the costs of the national marketing program, subject to a “Maximum Annual Cost” equal to 5% of the average total annual revenue for the previous calendar year (January 1 through December 31) of all franchisees whose franchised businesses have been in operation for at least 12 months as of December 31 of the previous year.

• Marketing Fee – Regional Programs:  established by Christian Brothers Automotive. You must pay Christian Brothers Automotive your prorated portion of the costs of any regional marketing programs, subject to a Maximum Annual Cost.

Section III – Number of Franchised and Company-Owned Christian Brothers Automotive Outlets

Franchised

2021

• Outlets at the Start of the Year:  227
• Outlets at the End of the Year:  247
• Net Change:  +20

2022

• Outlets at the Start of the Year:  247
• Outlets at the End of the Year:  265
• Net Change:  +18

2023

• Outlets at the Start of the Year:  265
• Outlets at the End of the Year:  280
• Net Change:  +15

Company-Owned

2021

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  0
• Net Change:  -4

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on the Christian Brothers Automotive Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Christian Brothers Automotive Franchise (Item 19, 2024 FDD)

• The following tables and figures relate to the 247 franchisee-owned CBA stores that were open and operating for the entire years of 2022 and 2023. This does not include the 18 stores that were opened in 2022 or the 15 stores that were opened in 2023.

• The following tables and figures also relate to the 265 franchisee-owned CBA stores that were open and operating for the entire year of 2023, which does not include the 15 stores that were opened in 2023.

Part 1 – Average Net Sales, by Sales Range

• Set forth in this Part 1 are the average Net Sales for the year ending December 31, 2023 for the 265 franchisee-owned CBA stores that were open for the entire year of 2023, based upon the below indicated sales ranges.

• This table includes all Stores that were open before January 1, 2023, and does not include any of the 15 Stores that were opened in 2023.

Sales Range:  Greater Than $4.5M

• Number of Stores Included:  7
• Average Sales:  $5,506,444

Sales Range:  $4M to $4.5M

• Number of Stores Included:  15
• Average Sales:  $4,190,658

Sales Range:  $3.5M to $4M

• Number of Stores Included:  17
• Average Sales:  $3,737,338

Sales Range:  $3M to $3.5M

• Number of Stores Included:  54
• Average Sales:  $3,230,271

Sales Range:  $2.5M to $3M

• Number of Stores Included:  76
• Average Sales:  $2,715,399

Sales Range:  $2.25M to $2.5M

• Number of Stores Included:  30
• Average Sales:  $2,378,233

Sales Range:  $2M to $2.25M

• Number of Stores Included:  34
• Average Sales:  $2,144,094

Sales Range:  $1.75M to $2M

• Number of Stores Included:  15
• Average Sales:  $1,861,806

Sales Range:  $1.5M to $1.75M

• Number of Stores Included:  12
• Average Sales:  $1,615,811

Sales Range:  Less Than $1.5M

• Number of Stores Included:  5
• Average Sales:  $1,413,692

Average Unit Volume

• Number of Stores Included:  265
• Average Sales:  $2,808,967

Part 2 – Average Gross Sales, Cost of Goods Sold, Gross Profit, General and Administrative Expenses, Net Operating Income, and Total Owner Benefit, by Number of Years in Operation

• Included in this Part 2 are 265 franchisee-owned CBA stores that were open for the entire year of 2023. This table does not include any of the 15 stores that were opened in 2023.

• Set forth in this Part 2 is a comparison table of Net Sales and certain expenses for 1 year old, 2 year old, 3 year old, 4 year old, and 5+ year old CBA Stores for the year ending December 31, 2023.

Average Gross Sales

• 1st year (18 Stores):  $2,039,572
• 2nd year (16 Stores):  $2,744,451
• 3rd year (18 Stores):  $2,880,821
• 4th year (19 Stores):  $2,726,695
• 5th year+ (194 Stores):  $2,887,065
• Average (Stores):  $2,808,967 (100.0%)

Average Cost of Goods Sold

• 1st year (18 Stores):  $852,913
• 2nd year (16 Stores):  $1,198,948
• 3rd year (18 Stores):  $1,266,758
• 4th year (19 Stores):  $1,141,263
• 5th year+ (194 Stores):  $1,222,229
• Average (Stores):  $1,192,957 (42.5%)

Average Gross Profit

• 1st year (18 Stores):  $1,186,660
• 2nd year (16 Stores):  $1,545,503
• 3rd year (18 Stores):  $1,614,063
• 4th year (19 Stores):  $1,585,432
• 5th year+ (194 Stores):  $1,664,836
• Average (Stores):  $1,616,010 (57.5%)

Average General and Administrative Expenses

• 1st year (18 Stores):  $790,851
• 2nd year (16 Stores):  $1,004,788
• 3rd year (18 Stores):  $1,014,448
• 4th year (19 Stores):  $1,022,209
• 5th year+ (194 Stores):  $1,030,272
• Average (Stores):  $1,010,818 (36.0%)

Average Net Operating Income

• 1st year (18 Stores):  $395,809
• 2nd year (16 Stores):  $540,715
• 3rd year (18 Stores):  $599,616
• 4th year (19 Stores):  $563,223
• 5th year+ (194 Stores):  $634,564
• Average (Stores):  $605,191 (21.5%)

Average Total Owner Benefit

• 1st year (18 Stores):  $223,879
• 2nd year (16 Stores):  $304,064
• 3rd year (18 Stores):  $308,490
• 4th year (19 Stores):  $308,261
• 5th year+ (194 Stores):  $350,301
• Average (Stores):  $333,068 (11.9%)

• Net Sales is defined as all gross revenue derived from labor, parts, and sub-contracted labor/parts and supplies, less labor/parts discounts.

• Cost of Goods Sold is defined as all technician labor, part costs, and all sub-contracted labor/parts associated with Net Sales.

• Gross Profit is defined as profit after Cost of Goods Sold are paid, but before General & Administrative expenses are paid.

• General & Administrative Expenses is defined as general overhead expenses for the business including, but not limited to, rent, utilities, office salaries, taxes, etc.

• Net Operating Income is defined as income (earnings) before depreciation, amortization, royalty expense – franchisor, and royalty expense – franchisee/owner.

• Total Owner Benefit is defined as the sum of the owner’s salary and any cash distribution or bonus the owner took during the calendar year. It does not, however, include the owner’s benefit of major medical health insurance premiums valued at up to approximately $14,500 per year for a married couple with dependent children nor does it include the owner’s benefit of principal reduction on any commercial debt service the owner has from the original business loan valued at approximately $25,000 per year.

Part 3 – Total Owner Benefit of Top 20% and Bottom 20% Performers

• Set forth in Part 3 is the Total Owner Benefit of the top and bottom 20% Total Owner Benefit performers (53 stores) for the year ending December 31, 2023, based on the 265 stores that were open for the entire year of 2023. This table includes all stores that were open by January 1, 2023, and does not include any of the 15 stores opened in 2023. The table also includes the Total Owner Benefit for all 265 locations.

Total Owner Benefit for Top 53 (Out of 265 Franchisee-Owned Locations)

• Low Total Owner Benefit for Top 53:  $440,000
• Median Total Owner Benefit for Top 53:  $550,000
• High Total Owner Benefit for Top 53:  $1,262,515
• Average Total Owner Benefit for Top 53:  $609,691

Total Owner Benefit for Bottom 53 (Out of 265 Franchisee-Owned Locations)

• Low Total Owner Benefit for Bottom 53:  $50,000
• Median Total Owner Benefit for Bottom 53:  $141,500
• High Total Owner Benefit for Bottom 53:  $196,500
• Average Total Owner Benefit for Bottom 53:  $132,289

Total Owner Benefit Out of 265 Franchisee-Owned Locations

• Low Total Owner Benefit for All 265:  $50,000
• Median Total Owner Benefit for All 265:  $302,298
• High Total Owner Benefit for All 265:  $1,262,515
• Average Total Owner Benefit for All 265:  $333,068

Part 4 – Shop Labor Rate

• Set forth in Part 4 is the Shop Labor Rate range and average for the year ending December 31, 2023 for the 265 CBA franchisee-owned Stores that were open for the entire year of 2023. This table includes all Stores that were open by January 1, 2023, and does not include any of the 15 Stores opened in 2023.

Shop Labor Rate

• Low Shop Labor Rate:  $129.95/hour
• Median Shop Labor Rate:  $159.00/hour
• High Shop Labor Rate:  $199.99/hour
• Average Shop Labor Rate:  $158.79/hour

Part 5 – Annual Car Count

• Set forth in Part 5 is the Annual Car Count (customer count) range and average for the year ending December 31, 2023 for the 265 CBA franchisee-owned Stores that were open for the entire year of 2023. This table includes all Stores that were open by January 1, 2023, and does not include any of the 15 Stores opened in 2023.

Annual Car Count:

• Low Annual Car Count:  1,882
• Median Annual Car Count:  4,627
• High Annual Car Count:  8,627
• Average Annual Car Count:  4,715

Section VI – Christian Brothers Automotive Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️