Christian Brothers Automotive
Christian Brothers Automotive offers auto repair and servicing franchises. Known for reliable vehicle maintenance services, it operates across multiple locations in the U.S., focusing on automotive care.
Christian Brothers Automotive franchise FAQ
How much does it cost to open one — the total initial investment?
This isn't specified in the excerpts.
What is the initial franchise fee?
The initial franchise fee is $85,000, with $20,000 of it being fully earned and non-refundable upon payment [p.14].
What are the ongoing royalty and advertising fees?
The ongoing royalties are based on franchisee sales and include support services like marketing, training, and operational support, which are bundled with the license rights. Advertising and marketing expenses are recognized as incurred and are not presented separately from other selling, general, and administrative expenses; they are aggregated into a single performance obligation along with the franchise license. [p.93, p.135, p.94, p.141, p.99]
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is for a period of fifteen (15) years from the Opening Date, unless sooner terminated as per the agreement's provisions [p.166]. The document does not specify whether you can renew the agreement or provide details on the renewal process [p.402] only mentions termination and non-renewal with specific notice periods under certain conditions.
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise. However, it requires approval from CBAC, and you must submit a written request. Additionally, you need to pay non-refundable fees of $10,000 upon approval of the term sheet or letter of intent, and another $20,000 at the closing of the sale. [p.25]
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
Yes, you will receive an exclusive geographic area, consisting of an identifiable geographic territory, which is designated as your 'Territory.' CBAC will not operate or grant franchises for a similar or competitive business within your area. [p.55]
What training and ongoing support does the franchisor provide?
The franchisor provides initial and ongoing training and support through CBAC, including the use of specific software solutions like Tekmetric for shop management and Epicor Kinetic for accounting. This support also covers marketing, training, operational assistance, and brand licensing to allow franchisees to use the company's brand and trademarks [p.135, p.93].
How many franchised outlets are there, and how many have closed or been terminated?
Exhibit D lists the names and addresses of all current franchisees along with their operational outlets as of the end of the fiscal year [p.79]. However, the number of franchised outlets and specifically how many have closed or been terminated is not detailed in these excerpts. This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations [p.73], and it is not authorized to provide such information orally or in writing [p.73]. However, if you are purchasing an existing outlet, the franchisor may provide actual records of that outlet's performance [p.73]. The franchisor provides tables and figures related to operating franchisee-owned outlets for 2024 and 2025, but this information is not included in the financial performance representations [p.65, p.66].
What am I restricted to selling, and where must I buy supplies?
You must offer all products and services that CBAC designates as required for all CBAC's franchisees [p.62]. Additionally, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which may be more expensive than similar items you could buy on your own [p.3].