Christian Brothers Automotive

The franchise fee is $135,000, paid in two installments: $85,000 at signing and $50,000 before certificate of occupancy. Veterans get a 10% discount ($121,500). Only $13,500 of the fee is non-refundable upfront; the balance is refundable under specific termination conditions — a more franchisee-friendly structure than most.

Total investment of $550,250 to $680,400 does not include real estate — CBAC builds and owns the facility. The major cost driver is equipment and furniture ($255,000–$280,000), which is purchased through CBAC. Marketing obligations are significant: $35,000–$40,000 in first-year advertising plus $20,000–$30,000 in new store opening marketing. You'll need a shuttle vehicle ($30,000–$50,000). Insurance and licensing runs $15,000–$60,000, a wide range that reflects state-level variation in automotive business requirements.

The cost structure after opening is what makes CBA unusual. You pay $22,000–$38,000/month in base rent to CBAC for the property (they own it, you operate it). On top of that, you pay 50% of Split Profits — defined as revenues minus approved expense items. If your shop generates $100K in monthly Split Profits, $50K goes to CBAC as the franchisor's share. The 3% national program advertising fee is capped at a percentage of average system revenue, and the technology/IT bundle runs roughly $675/month ($475 + $200). This is a genuinely different financial structure than almost every other franchise in any category.

Christian Brothers Automotive's Item 19 references financial data across 280 stores open for the full 2024 year, including net operating income and total owner benefit (owner salary + cash distributions). Unfortunately, the actual financial tables in the FDD are in image format, and specific dollar figures weren't captured in extraction. What is disclosed textually: 3 of 280 full-year stores had negative NOI in 2024 — a 1.1% negative rate that is exceptionally low for any automotive franchise category, where troubled locations typically run 8–15% of the system.

The 50% profit split model means your take-home is directly tied to expense management. CBAC defines which expenses are 'Approved Expense Items' for the split calculation — understanding this definition is critical, as expenses excluded from the calculation increase your taxable Split Profits and therefore your payment to CBAC. Before signing, request an itemized list of what counts as an Approved Expense Item and model your expected Split Profit under different revenue scenarios. To validate earnings expectations, speaking directly with existing franchisees — 302 of them operate in the system — is the most reliable approach.

CBA has grown every year: 247 units in 2022, 265 in 2023, 280 by end of 2023, and 302 by end of 2024 — approximately 18–22 net new units per year. The transfer rate (26 transfers in 2022, 19 in 2024) reflects an active secondary market for existing locations, which is a strong indicator that operators can build and sell enterprise value. Near-zero closures over three years across 300 units is a standout statistic. This is a system where franchisees who open are staying open and operators who want to exit are finding buyers — the hallmarks of a healthy franchise ecosystem.

The $22,000–$38,000/month base rent paid to CBAC is a fixed obligation that doesn't scale with revenue. In a slow month, you still owe rent — and the profit split is calculated before that rent is deducted from Split Profits (rent is an Approved Expense Item, but confirm this explicitly). The effective total payment to CBAC each month (rent + 50% profit split) could run substantially higher than a traditional 5–6% royalty model in a high-revenue store. Model this carefully across a range of revenue scenarios.

The transaction fee on transfers is steep: the greater of 7% of gross value or $50,000, plus $30,000 in staged transfer fees. If your location is worth $400,000 at sale, you'd pay $28,000 (7%) or $50,000, whichever is higher — potentially $80,000 total exit cost. The equipment package ($255,000–$280,000) must be purchased through CBAC, a captive supply arrangement for a significant capital outlay. Finally, because CBAC owns the real estate, you have no landlord alternative — your entire location security depends on maintaining your franchise agreement.