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

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.

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.

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.

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.