Christian Brothers Automotive Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$520,000

-

$645,000

LOCATIONS

253

Adam

Updated

April 11, 2024

Is

Christian Brothers Automotive

a franchise?

Yes,
Christian Brothers Automotive
currently
accepts
franchise
applications

Christian Brothers Automotive is a prominent American full-service auto repair franchise with its headquarters based in Houston, Texas.

The foundation of this chain dates back to 1982 when it was established by Mark Carr.

Christian Brothers Automotive operates a comprehensive network of vehicle service centers, where they deliver a wide spectrum of services, including AC services, brake maintenance, oil and filter changes, scheduled maintenance, and precision tune-ups.

Christian Brothers Automotive embarked on its franchising journey in 1996. Since then, it has consistently expanded its footprint, amassing a substantial presence with over 250 operational locations scattered across the United States.

How many

Christian Brothers Automotive

franchises

are there?

In 2022, there were
253
outlets in
the United
States, of which
253
are franchises, and
0
are corporate-owned.

What are the

Christian Brothers Automotive

franchise

fees?

Royalty fee

50% of profit

Advertising fee

5.00%

Initial Franchise Fee ($135,000)

You must pay Christian Brothers Automotive an initial Franchise Fee of $135,000. This fee is paid in two installments. The first installment is the Down Payment in the amount of $85,000 ($13,500 of this installment is non-refundable) and is due at the earlier of your signing the Franchise Agreement or your signing the Acknowledgement and Receipt Agreement.

Royalty Fee (50% of monthly "Split Profits")

You will pay a "Royalty Fee" of 50% of monthly "Split Profits" to Christian Brothers Automotive each month during the initial term of your franchise and during the remainder of all terms of your franchise, including all extension and renewal periods.

This payment is due on the last day of each succeeding month, and is based on the "Split Profits" estimated for the preceding month. "Split Profits" shall mean all monies, revenues, and items of value from all sources generated in connection with and/or in any way related to the Franchised Business minus the Approved Expense Items.

Advertising Fee (Up to 5% of average total annual revenue)

If Christian Brothers Automotive establishes any Programs, you will pay a "Marketing Fee" of up to the Maximum Annual Cost per Program fund per year. The Marketing Fee will be combined with contributions made by all other franchisees of Christian Brothers Automotive that are members of that Program to create marketing funds. The Marketing Funds are intended to further general public recognition and acceptance of the Marks for the benefit of the System.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Christian Brothers Automotive

franchise?

It costs between
$520,000
and
$645,000
to start a
Christian Brothers Automotive
franchise.
Expenditure Type Cost Range Paid To
Initial Franchise Fee $135,000 CBAC
Real Estate and Improvements $0 at startup, but monthly thereafter Landlords or Sellers
Equipment, Furniture, and Software $255,000 to $280,000 Suppliers
Shuttle Vehicle $20,000 to $30,000 Vehicle Dealers or Lessors
Shuttle Vehicle Wrap $1,500 to $2,500 Suppliers
Inventory $25,000 to $35,000 Suppliers
Security Deposits $2,500 to $7,500 Landlords or Utility Companies
New Store Opening Marketing/Advertising $15,000 to $20,000 Advertisers and Suppliers
Pre-Opening Training Travel/Salary $7,500 to $10,000 Airline, car rental agency, hotel, restaurants
Total Estimated Initial Investment $520,250 to $645,400

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Christian Brothers Automotive

provide

training

to its

franchisees?

Yes,
Christian Brothers Automotive
provides
training

For those considering this venture, understanding the training and support provided by the franchisor can be crucial. Here's a closer look:

  • Initial Training: Christian Brothers Automotive places a strong emphasis on preparing its franchisees right from the start. They offer an "Orientation/Training Program" that combines both classroom instruction and hands-on experience. This training is conducted through an online portal, at their offices in Houston, Texas, and at field-training locations designated by the company.
  • Training Breakdown: The training program is comprehensive and covers various aspects of the business:
  •        Self-Paced Pre-Training (Online): This includes topics like Leadership & Business Management, Organization & Computer Software, Customer Satisfaction & Service, Sales, Automotive Systems, Recordkeeping & Human Resources, and Marketing. This training can be done from the franchisee's home or another location of their choice.
  •         In-Office Training: This segment focuses on Leadership & Business Management, Organization & Computer Software, Customer Satisfaction & Service, and Sales. The training is conducted at the company's offices.
  • Field Training: This training is store-moderated and ensures that franchisees get a practical understanding of the operations. The training is divided into segments conducted at Certified Training Locations and Certified Field Trainer's locations. A portion of the training is also conducted at the franchisee's business location.
  • Costs and Expenses: While Christian Brothers Automotive provides the training, franchisees are responsible for all related expenses.

Does

Christian Brothers Automotive

provides

territory

protection?

Christian Brothers Automotive does grant franchisees an exclusive geographic area, known as the "Territory." Within this designated Territory, franchisees have the sole and exclusive right to solicit the sale of the services.

The document states: "In conjunction with the establishment of your franchise, you will be granted an exclusive geographic area consisting of an identifiable geographic territory, which will be designated as your 'Territory.'

You will operate from one location and must receive CBAC’s permission before relocating. You will not have the right to operate your franchise outside of your Territory. CBAC will not operate or grant franchises for a similar or competitive business within your area."

Furthermore, the Franchise Agreement specifies that "Franchisee shall have the sole and exclusive right to solicit the sale of the Services within the Territory." It also mentions that the franchisor will not operate a similar business or grant a franchise for a similar business within the franchisee's Territory.

Can a

Christian Brothers Automotive

franchise

be run as

a passive

investment?

Christian Brothers Automotive emphasizes the importance of franchisees maintaining active management control over their facility. Specifically, the franchisee retains the right and sole responsibility for the day-to-day management and operation of the Franchised Business and the implementation and maintenance of System standards at the Franchised Business.

The franchisee, its Principal Operator, and the spouse of the Principal Operator each agree not to campaign for or hold any public office. The failure of the Principal Operator to comply with the terms of this section will constitute a material breach of the agreement.

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