Christian Brothers Automotive franchise
A franchisee operates a single Christian Brothers Automotive facility offering automotive repair and maintenance services to the general public, in a building the franchisor or an affiliate controls and subleases to the franchisee.
Owner-operator required Disclosed
- Source
- 2026 Franchise Disclosure Document — Christian Brothers Automotive Corporation
- Document
- FDD 2026, issued 2026-04-17
- Item
- Item 15
- Page
- PDF p. 60
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641042
CBAC requires that the “Principal Operator” or “You” personally supervise the Franchised Business.
The Principal Operator must personally supervise the franchised business and cannot delegate that role to a third party without the franchisor's written consent. A separate Service Manager must also supervise the business and assist with day-to-day operations; both must complete the franchisor's training. The business must be open 7:00 AM to 6:00 PM Monday to Friday, and the franchisee may not take on activities that interfere with these obligations. Neither the franchisee nor the franchisee's spouse may campaign for or hold public office during the franchise.
What stands out
- Royalty is 50% of monthly 'Split Profits' (revenue less franchisor-approved Shared Expenses), not a percentage of sales; owner salary counts as a Shared Expense only up to $60,000 a year.
- Item 7 total is $515,250–$650,400 including an $85,000 franchise fee. No real estate is purchased: the franchisor builds and leases the site back at roughly $22,000–$38,000 a month base rent plus triple-net, outside the total.
- Item 19 reports average Net Sales of $2,865,872 and median $2,702,696 for 302 franchised stores open all of calendar 2025; 48% met or exceeded the average.
5 more observations
- Item 19 also gives costs and profit measures by store age: average net operating income of $283,504 (first full year) rising to $607,838 (five years and older), and average Total Owner Benefit of $310,322 across all 302 stores.
- Item 20 records no terminations, non-renewals, reacquisitions or other closures in 2023–2025; franchised outlets grew from 265 to 326 and there are no company-owned outlets.
- 97 franchise agreements were signed but not open at December 31, 2025, and the FDD carries a state-required 'Unopened Franchises' risk statement.
- The Principal Operator must personally supervise the business, a Service Manager is also required, and the franchisee's spouse must sign a joinder that the FDD says makes the spouse liable for the agreement's financial obligations.
- No minimum liquid capital or net worth requirement is disclosed in the reviewed source.
Things to verify
- Ask how 'Shared Expenses' and 'Split Profits' are currently defined in the Confidential Operations Manual, how often the definitions change, and which costs at a comparable store were treated as Unshared Expenses last year.
- Get the base rent that would apply to your specific site. Item 7 excludes rent because of an initial rent-free period, but the 15-year lease at $22,000–$38,000 a month plus triple-net and 1.5% annual escalation is a fixed obligation to the franchisor.
- Model the business including depreciation, amortisation and loan repayment. Item 19's NOI and Total Owner Benefit are both stated before those items, and the investment is $515,250–$650,400.
4 more questions
- Review the Item 12 Minimum Performance Requirements — a rolling six months of positive Net Ordinary Income, and not falling 30% or more below the mean of mature franchises for three consecutive years — and the Distressed Store Support Program targets.
- Understand the exit: a $30,000 transfer fee, a possible transaction fee of the greater of 7% of transaction value or $50,000, and a Sale Event Royalty Fee of 50% of net sale proceeds.
- Check the current status of the Fifth Circuit appeal in the pending Item 3 matter.
- Ask franchisees about the effect of confidentiality provisions Item 20 says some current and former franchisees have signed, and request the written substantiation for Item 19 that the franchisor offers on reasonable request.
Economics: No calculator is offered because the Continuing Royalty Fees is charged on split profit, not sales — a revenue-driven model would misstate it. Model availability
Evidence confidence: High. This describes source support, not investment quality. AI-extracted and machine-verified where stated; no human line-by-line review. Source and review record.
Read the full research overview
A Christian Brothers Automotive franchisee operates one automotive repair and maintenance facility serving the general public, open 7:00 AM to 6:00 PM Monday through Friday. The franchisor or an affiliate acquires the site and builds or retrofits the building, then leases it to the franchisee for 15 years. Item 7 estimates the initial investment at $515,250 to $650,400, including an $85,000 franchise fee ($76,500 with the IFA VetFran discount) and $270,000 to $300,000 of equipment, furniture and software bought through the franchisor. Real estate is $0 at start-up because it is leased; base rent then runs about $22,000 to $38,000 a month plus triple-net costs and rises 1.5% a year, so occupancy cost sits outside the headline range.
The fee structure is unusual. Instead of a percentage of sales, the royalty is 50% of monthly 'Split Profits' — revenue less expenses the franchisor has approved as 'Shared Expenses', with owner salary counting only up to $60,000 a year and any unapproved expense requiring a matching royalty payment. Marketing contributions were $12,500 a year as of December 31, 2025, capped at 3% of the prior year's average franchisee revenue. Recurring charges also include $550 a month for accounting, $200 a month for IT support, about $725 a month for operating systems and internet failover and about $11,000 a year in software licences.
Item 19 is detailed. For the 302 franchised stores open the whole of 2025 it reports average Net Sales of $2,865,872 and a median of $2,702,696, with 48% at or above the average and stores ranging from $938,655 to $6,462,966; the 24 stores opened during 2025 are excluded and there are no company-owned outlets. It also discloses cost of goods sold, gross profit, G&A, net operating income and Total Owner Benefit by store age — average NOI ran from $283,504 for first-full-year stores to $607,838 for stores five years and older, average Total Owner Benefit across all 302 stores was $310,322, and five stores had negative NOI. It shows no figure after depreciation, amortisation, royalty or debt service; the numbers are unaudited and were restated to current royalty and owner-salary terms.
Franchised outlets grew from 265 at the start of 2023 to 326 at the end of 2025, with 15, 22 and 24 openings and no terminations, non-renewals, reacquisitions or other closures in the three years. Transfers were 15, 19 and 13. At year-end 2025 there were 97 signed agreements for outlets not yet open and 28 openings projected for the next year. Item 3 discloses one pending matter (summary judgment for the franchisor in September 2025, now on appeal) and one concluded franchisor-initiated arbitration; disputes are arbitrated in Houston under Texas law; Item 12 imposes minimum performance requirements that can cost a franchisee the territory or the franchise. No minimum liquid capital or net worth requirement is disclosed in the reviewed source.
View ratings and their supporting evidence
Transparent ratings
How these are computedEach dimension is scored 1–5 from published formulas. Missing data yields “Not enough evidence to rate”, never a low score. There is no composite score by design.
How the system has performed, computed from the disclosed Items 7, 19 and 20. Figures a documented material source inconsistency puts in doubt are excluded, and the dimension shows “Not rated”.
Inputs
- Franchised outlets 265 → 326 (Item 20, Table 3)
- Thresholds: ≥15% → 5; 5–15% → 4; 0–5% → 3; −5–0% → 2; below −5% → 1
Inputs
- Attrition = (terminations + non-renewals + reacquisitions + ceased-other) ÷ start-of-year franchised units, averaged over 3 fiscal years
- Thresholds: <2% → 5; 2–4% → 4; 4–6% → 3; 6–10% → 2; >10% → 1
Inputs
- AUV $2,865,872 (disclosed) ÷ midpoint investment $582,825 = 4.92×
- Thresholds: ≥2.0 → 5; 1.5–2.0 → 4; 1.0–1.5 → 3; 0.7–1.0 → 2; <0.7 → 1
How much this brand’s FDD discloses, and how well-supported our data on it is. This measures transparency, not business performance — a strong business that discloses little scores low here and stays unrated above.
Inputs
- Item 19 present (+1)
- Average plus median or a distribution (+1)
- Population 93% of franchised units, clearly described (+1)
- Cost or profit data disclosed (+1)
- Multi-year or cohort data (+1)
- Franchisor Track Record
- Franchising 30 years (since 1996) · 326 outlets · Item 3: 2 matter(s) disclosed · Item 4: none disclosed
- Multi-Unit Scalability
- A multi-facility programme exists under which a franchisee may hold more than one Christian Brothers Automotive franchise, but Item 1 and Item 12 both state … · Owner-operator required
- Operational Intensity
- Owner-operator required
Initial investment
FDD Items 5 and 7Format shown: Single new Christian Brothers Automotive facility; site subleased from the franchisor
$515,250–$650,400 total initial investment. Excludes real estate purchase. Includes 3 months of additional funds.
View full investment breakdown — Items 5 & 7
| Initial franchise fee (the named Item 5 fee only) | $85,000 Disclosed
Flat standard fee. The 10% IFA VetFran discount for honorably discharged veterans is excluded from the standard rate per instructions. |
|---|---|
| Other required initial payments to the franchisor (Item 5) |
|
| Total Item 5 payments to franchisor/affiliates | $356,650 Derived
$386,650 Derived
|
| Total initial investment — low | $515,250 Disclosed
|
| Total initial investment — high | $650,400 Disclosed
|
| Midpoint of range | $582,825 Derived
|
| Real estate purchase included? | No — assumes a leased site |
| Additional funds assumed | 3 months |
| Required liquid capital | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Christian Brothers Automotive Corporation; we do not fill gaps with estimates or third-party figures. No minimum liquid capital requirement appears on the cover pages or in Items 1, 5, 7, 11 or 15 of the reviewed document. |
| Required net worth | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Christian Brothers Automotive Corporation; we do not fill gaps with estimates or third-party figures. No minimum net worth requirement appears on the cover pages or in Items 1, 5, 7, 11 or 15 of the reviewed document. The only net-worth figure in the document is the $100,000 escrow threshold in the state-required Michigan notice, which applies to the franchisor, not the franchisee. |
The line items foot exactly to the disclosed totals ($515,250 low and $650,400 high). The estimate assumes no real-estate purchase: the franchisor or an affiliate buys the land and builds or retrofits the building and then leases or subleases it to the franchisee for 15 years at roughly $22,000–$38,000 per month base rent plus triple-net costs, escalating 1.5% a year. Item 7 assumes no rent during the initial period because the franchisor generally attempts to provide up to a six-month rent-free period, so ongoing occupancy cost is not inside the totals. Additional funds cover only the first three months of operation. Of the total, the cover page states $392,500 to $419,000 must be paid to the franchisor or its affiliates.
Item 7 line items (14)
| Expenditure | Low | High |
|---|---|---|
| Initial franchise fee — $76,500 with the IFA VetFran discount. | $85,000 | $85,000 |
| Real estate and improvements — $0 at start-up; the site is subleased from the franchisor at roughly $22,000–$38,000/month base rent thereafter. | $0 | $0 |
| Equipment, furniture and software — Purchased from or through the franchisor and rebilled at its cost. | $270,000 | $300,000 |
| Shuttle vehicle — Approved makes/model years only. | $30,000 | $50,000 |
| Shuttle vehicle wrap | $1,750 | $3,400 |
| Inventory | $11,000 | $12,000 |
| Security deposits — Paid to local utility companies. | $5,000 | $5,000 |
| Signs — Cost is included in the project cost or construction loan. | $0 | $0 |
| Insurance and business license — Estimated annual premiums and licences. | $15,000 | $60,000 |
| Marketing/advertising (first year) | $35,000 | $40,000 |
| New store opening marketing/advertising — 90 days before through 60 days after opening. | $20,000 | $30,000 |
| Pre-opening training travel/salary | $7,500 | $10,000 |
| Other payments — Includes the $2,500–$4,000 loan administration fee. | $5,000 | $15,000 |
| Additional funds — initial 3 months | $30,000 | $40,000 |
Source for every row: the Item 7 estimated-initial-investment table of 2026 Franchise Disclosure Document — Christian Brothers Automotive Corporation (table begins PDF p. 29) — rows inherit the table's citation rather than carrying fifteen identical ones.
Ongoing fees
FDD Item 6Royalty
50% (see basis) Disclosed
- Source
- 2026 Franchise Disclosure Document — Christian Brothers Automotive Corporation
- Document
- FDD 2026, issued 2026-04-17
- Item
- Item 6 — Continuing Royalty Fees / Note 2
- Page
- PDF p. 17
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641042
50% of monthly “Split Profits” during the initial franchise term and during all extensions and renewals.
Not a percentage of sales. The royalty is 50% of monthly 'Split Profits', defined as all revenue from the business minus 'Shared Expenses' — expense items the franchisor approves and can change through the Confidential Operations Manual. Owner (and spouse/household dependent) salary counts as a Shared Expense only up to $60,000 combined; any expense that is not a Shared Expense requires an equal additional royalty payment. Estimated payments are due monthly with an annual true-up.
Brand advertising fund
$12,500/year Disclosed
- Source
- 2026 Franchise Disclosure Document — Christian Brothers Automotive Corporation
- Document
- FDD 2026, issued 2026-04-17
- Item
- Item 6 — Note 6
- Page
- PDF p. 25
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641042
As of December 31, 2025 the franchisor was charging $12,500 per year in total marketing payments for the National Program and Regional Programs combined, which it says was about 0.42% of average total annual revenue across franchises open by that date. The amount is set by the franchisor as each franchisee's prorated share of programme costs, subject to a Maximum Annual Cost equal to 3% of the prior calendar year's average total annual revenue of franchisees open at least 12 months. Payments start after six months in operation.
Local marketing
Not disclosed in the reviewed source Not disclosed
Not disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Christian Brothers Automotive Corporation; we do not fill gaps with estimates or third-party figures.
Suggested, not a stated required minimum. Item 11 says the franchisor uses 1%–2% of annual gross revenue as a suggested metric for local advertising after the first two years, recommends $55,000–$70,000 in year one (including $20,000–$30,000 of new-store-opening marketing) and $40,000–$65,000 in year two, and reserves the right to set a required minimum later. The franchisor may require up to $30,000 of new store opening or transition marketing. All local advertising must be approved in advance by the franchisor's marketing department.
Core requirements shown separately; caps, credits and conditions may overlap. Check the full schedule for technology, cooperative, transfer and other charges.
View all recurring fees and conditions
| Royalty | 50% (see basis) Disclosed
Not a percentage of sales. The royalty is 50% of monthly 'Split Profits', defined as all revenue from the business minus 'Shared Expenses' — expense items the franchisor approves and can change through the Confidential Operations Manual. Owner (and spouse/household dependent) salary counts as a Shared Expense only up to $60,000 combined; any expense that is not a Shared Expense requires an equal additional royalty payment. Estimated payments are due monthly with an annual true-up. Not a percentage of sales. The royalty is 50% of monthly 'Split Profits', defined as all revenue from the business minus 'Shared Expenses' — expense items the franchisor approves and can change through the Confidential Operations Manual. Owner (and spouse/household dependent) salary counts as a Shared Expense only up to $60,000 combined; any expense that is not a Shared Expense requires an equal additional royalty payment. Estimated payments are due monthly with an annual true-up. |
|---|---|
| Advertising / brand fund | $12,500/year Disclosed
As of December 31, 2025 the franchisor was charging $12,500 per year in total marketing payments for the National Program and Regional Programs combined, which it says was about 0.42% of average total annual revenue across franchises open by that date. The amount is set by the franchisor as each franchisee's prorated share of programme costs, subject to a Maximum Annual Cost equal to 3% of the prior calendar year's average total annual revenue of franchisees open at least 12 months. Payments start after six months in operation. As of December 31, 2025 the franchisor was charging $12,500 per year in total marketing payments for the National Program and Regional Programs combined, which it says was about 0.42% of average total annual revenue across franchises open by that date. The amount is set by the franchisor as each franchisee's prorated share of programme costs, subject to a Maximum Annual Cost equal to 3% of the prior calendar year's average total annual revenue of franchisees open at least 12 months. Payments start after six months in operation. |
| Required local marketing | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Christian Brothers Automotive Corporation; we do not fill gaps with estimates or third-party figures. Suggested, not a stated required minimum. Item 11 says the franchisor uses 1%–2% of annual gross revenue as a suggested metric for local advertising after the first two years, recommends $55,000–$70,000 in year one (including $20,000–$30,000 of new-store-opening marketing) and $40,000–$65,000 in year two, and reserves the right to set a required minimum later. The franchisor may require up to $30,000 of new store opening or transition marketing. All local advertising must be approved in advance by the franchisor's marketing department. |
| Technology / software | $11,000/year Disclosed
Approximately $11,000 a year in software maintenance/licence fees (plus an approximate $1,650 upfront cost), calculated annually and drafted monthly in equal instalments. Separate recurring technology charges are listed under other_recurring: IT support of $200 a month and operating systems and internet failover of about $725 a month, both plus data overages. Software covers the shop management system, accounting suite, middleware, hosting, SEO, PCI compliance, network equipment and related services. Approximately $11,000 a year in software maintenance/licence fees (plus an approximate $1,650 upfront cost), calculated annually and drafted monthly in equal instalments. Separate recurring technology charges are listed under other_recurring: IT support of $200 a month and operating systems and internet failover of about $725 a month, both plus data overages. Software covers the shop management system, accounting suite, middleware, hosting, SEO, PCI compliance, network equipment and related services. |
| Advertising cooperative | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Christian Brothers Automotive Corporation; we do not fill gaps with estimates or third-party figures. Franchisees may form market-wide marketing co-ops (MMCs) subject to franchisor approval, and two had been established as of the document date; contribution amounts are set by each MMC's governing documents and are not disclosed. Item 8 states there are no purchasing or distribution cooperatives in the system. |
| Transfer fee | $30,000 one-time Disclosed
$10,000 on the franchisor's approval of a signed term sheet or letter of intent and $20,000 at closing; both instalments non-refundable. A separate transaction fee (the greater of 7% of transaction value or $50,000) applies if the franchisor sources the buyer, and a Sale Event Royalty Fee of 50% of net sale proceeds is payable at closing. $10,000 on the franchisor's approval of a signed term sheet or letter of intent and $20,000 at closing; both instalments non-refundable. A separate transaction fee (the greater of 7% of transaction value or $50,000) applies if the franchisor sources the buyer, and a Sale Event Royalty Fee of 50% of net sale proceeds is payable at closing. |
| Renewal fee | 10% (see basis) Disclosed
10% of the initial franchise fee charged for the most recently sold franchise at the time of renewal, payable on each renewal. Treated as an Unshared Expense, which under Note 2 requires a matching royalty payment. 10% of the initial franchise fee charged for the most recently sold franchise at the time of renewal, payable on each renewal. Treated as an Unshared Expense, which under Note 2 requires a matching royalty payment. |
| Royalty + ad fund (% of sales) | Not disclosed as percent of sales Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Christian Brothers Automotive Corporation; we do not fill gaps with estimates or third-party figures. |
Fee schedule (23 fees; 19 verified against the source, 4 single-pass)
Every recurring, conditional and one-time fee found in this FDD's Item 6 table (plus mandatory recurring costs disclosed in Items 7/11), each cited to its page and carrying its verification status: verified means two independent readings agreed or a tie-break re-inspection of the page decided it; single-pass means one reading captured it and it has not been independently confirmed (permitted only for fees that cannot move modeled economics — see the materiality rule). Amounts marked “not stated” are charged at then-current rates the FDD does not quantify and are never modeled as $0.
| Fee | Amount | Frequency | Mandatory | Verification | Cite | Notes |
|---|---|---|---|---|---|---|
| Continuing Royalty Fees | 50% of split profit | monthly | Yes | verified (2-pass) | Item 6, p. 17 | Payable during the initial term and all extensions/renewals; any expense the franchisor does not approve as “Shared” (an “Unshared Expense”) requires an equal, additional royalty payment. |
| Additional Training and Support Fees | Not stated | varies | Conditional | verified (2-pass) | Item 6, p. 17 | Attendance at additional training may be mandatory or optional at CBAC's discretion; franchisee bears travel/living expenses regardless. As of the FDD date, CBAC has not yet charged any fee for this. |
| Administrative and Accounting Fees | $550 | monthly | Yes | verified (2-pass) | Item 6, p. 18 | |
| Marketing Fee – National Program | $12,500 | annual | Yes | verified (tie-break) | Item 6, p. 25 | Payment begins after six months in operation; billed monthly and due the last business day of each month. CBAC-operated repair facilities participate on the same basis. The Item 6 fee table (page 18) gives no amount ("Established by CBAC… your prorated portion of the costs of the national marketing program, subject to a Maximum Annual Cost"); the only dollar figure in the FDD is the combined $12,500 in Note 6, so Pass B's value is correct and Pass A's null under-reports a disclosed amount. |
| Marketing Fee – Regional Programs | Not stated | monthly | Yes | verified (tie-break) | Item 6, p. 19 | CBAC has established Regional Programs as of the FDD date and participation in the franchisee's regional program is required; payment begins after six months in operation. Mandatory set true (Pass B): the Remarks column states CBAC has established regional programs and "You must participate in the regional marketing programs for the region in which your automotive repair facility is located." Pass A left mandatory null. Category follows Pass B (marketing_other) as the fund is regional, not national; with a null value the category has no effect on modelled cost. |
| Transfer Fee | $30,000 | per event | No | verified (tie-break) | Item 6, p. 19 | $10,000 due on CBAC's written approval of the term sheet or letter of intent signed by franchisee and buyer; $20,000 balance due at closing of the sale. Both instalments deemed earned on receipt and non-refundable. Note 7 makes these fees an Unshared Expense, which under Note 2 requires an equal matching royalty payment. Both passes read $30,000; the only difference was frequency. per_event is correct — the fee is charged at each transfer, not once in the life of the franchise. |
| Transaction Fee | $50,000 (min $50,000) | per event | No | verified (tie-break) | Item 6, p. 20 | Applies only if the franchisee authorises CBAC to find an outside buyer (one who does not already own a CBA franchise) or CBAC provides a buyer from its candidate pool. In addition to the $30,000 transfer fee. Note 8 makes it an Unshared Expense, requiring a matching royalty. Value 50000 (Pass B) rather than null (Pass A): an amount is stated — $50,000 is the disclosed floor — so the field should not be null. overlaps_with is null (Pass B): Note 8 says the transaction fee is "in addition to the transfer fee", so it is not a component of, or credited against, transfer-fee. |
| Lease Payments | $22,000–$38,000 (min $22,000/monthly) | monthly | Yes | verified (tie-break) | Item 6, p. 20 | 15-year initial lease term for new locations; base rent due the 1st of each month and escalates 1.5% on each lease anniversary; triple net costs due as they arise. Transition stores inherit the seller's rent and remaining term. No security deposit currently required. A site whose costs push rent above the high end requires the franchisee's signed written acknowledgement. Amount is a range that varies by site, so amount_type is variable (Pass A), not fixed (Pass B); model_treatment requires_assumption for the same reason, plus the unquantified triple net costs and the up-to-six-month rent-free period CBAC generally attempts to provide. Calculator audit 2026-09-03: amount_type=variable, so src/lib/economics.ts only seeds a requires_assumption dollar line from a fixed value or a `minimum` bound - with neither set, this mandatory, material fee (the single largest recurring payment in the schedule, paid to CBAC or its affiliate) was silently excluded rather than shown at its disclosed $264,000/yr floor. Kept as a low-priority correction only: while the royalty gate keeps this brand's whole calculator DISABLED, this fix has no visible effect, but it is correct and ready if the brand is ever reactivated. (p. 20; "Approximately $22,000 to $38,000 base rent per m |
| IT Support Fee | $200 | monthly | Yes | verified (2-pass) | Item 6, p. 20 | |
| Software and related annual maintenance/license fees | $11,000 | annual | Yes | verified (2-pass) | Item 6, p. 21 | |
| Operating Systems & Internet Failover | $725 | monthly | Yes | verified (2-pass) | Item 6, p. 21 | |
| Loan Administration Fee | Tiered (base $2,500) | per event | No | verified (tie-break) | Item 6, p. 22 | Payable on demand at the closing and funding of the start-up loan, and again at the close of any in-house refinance. Category one_time_other (Pass B) rather than other_recurring (Pass A): it is an event fee, not a recurring charge. Tiers populated because the two amounts are alternatives, not a continuous range. |
| Liquidated Damages | Not stated | per event | No | verified (tie-break) | Item 6, p. 22 | Payable on demand only if CBAC terminates the Franchise Agreement for violation of the franchisee's confidentiality or non-compete obligations (Franchise Agreement Section 15.09). Value stays null — the FDD states no amount. model_treatment not_recurring (Pass A) preferred over unknown_amount (Pass B) because the engine's issue is that the charge is contingent, not merely unquantified; the null value already signals the unknown amount. |
| Step-In Rights Management Fee | $5,000 | monthly | No | verified (tie-break) | Item 6, p. 22 | Only while CBAC exercises its Step-In Rights, triggered by a non-curable default, an uncured default, material failure to meet Manual/Franchise Agreement standards, abandonment or failure to actively operate, or the death, disability or incapacity of the Principal Operator. Both passes found this fee at the same amount and page; it appears in the conflicts file only because entries were paired by position. |
| Renewal Fee | 10% of other | per event | No | verified (tie-break) | Item 6, p. 23 | Payable only on renewal; the Franchise Agreement may be renewed after the 15-year initial term for three consecutive 5-year terms. The renewal fee is an Unshared Expense, which under Note 2 requires an equal matching royalty payment. Identical readings; only the frequency label differed. per_event is correct because the fee can fall three times. |
| Sale Event Royalty Fee | 50% of other | per event | No | verified (tie-break) | Item 6, p. 23 | Payable to CBAC on the closing date of an assignment of the Franchise Agreement, a sale of the Franchised Business, or an assignment of any Interest resulting in a change of control. A final reconciliation after closing also pays CBAC 50% of the Split Profits existing at that date. If the purchase price exceeds four times the seller's Total Owner Benefit, the assignee's acquisition-debt principal and interest become an Unshared Expense requiring a matching royalty. Both passes agree on 50% of net sale proceeds at page 23; only id, frequency label and the depth of the conditions differed. |
| Local advertising (franchisee-funded) | Not stated | annual | No | verified (tie-break) | Item 11, p. 46 | Each franchise location must do all of its own local advertising and the cost is an operating expense of the franchisee, not paid to CBAC. All materials and channels require prior written approval from the CBAC Marketing Department; unapproved materials are treated as out of compliance and as an unapproved marketing expense. Value is null, not 1-2%, because the page calls the range a suggested metric and contemplates a required minimum only in the future. Item 11 also states the range excludes Marketing Funds contributions and any MMC co-op fees, so there is no overlap with marketing-national or a co-op entry. |
| Market-Wide Marketing Co-op (MMC) Contribution | Not stated | varies | No | verified (2-pass) | Item 11, p. 47 | Applies only to franchisees in a market where an MMC has been established (two existed as of the FDD date); subject to CBAC approval. |
| Additional tax filing services - monthly sales and use tax filings | $25 | monthly | No | single-pass | Item 6, p. 18 | Only if the franchisee elects CBAC's additional tax filing services. [Listed by one verification pass only (B); not independently confirmed.] |
| Additional tax filing services - annual personal property tax renditions | $75 | annual | No | single-pass | Item 6, p. 18 | Only if the franchisee elects CBAC's additional tax filing services. [Listed by one verification pass only (B); not independently confirmed.] |
| Insurance & Business License | $15,000–$60,000 (min $15,000/annual) | annual | Yes | verified (tie-break) | Item 7, p. 33 | Normally divided into ten or twelve instalments; an initial cash deposit may be required. Premiums vary with projected volume, loss history and experience rate, and a lender may require additional coverage. Group health, disability, dental, vision and supplemental insurance are optional and are Unshared Expenses for Split Profits purposes. Listed only by Pass B. Verified: the Item 7 table row "INSURANCE & BUSINESS LICENSE $15,000 to $60,000 (Note 8)" is on physical page 28 and Note 8's per-year statement on page 33. Payable to third parties, like local-advertising, but required by the Franchise Agreement and recurring, and the schema provides an insurance category. Calculator audit 2026-09-03: Same amount_type=variable/no-minimum gap as lease-payments: this mandatory, material, 4x-range fee was silently excluded rather than seeded at its $15,000/yr disclosed floor. Same low-priority caveat: inert while the calculator stays disabled by the royalty gate, but correct. (p. 33; "We estimate that you will spend between $15,000 and $60,000 per year on insuranc") |
| New Store Opening / Transition Marketing | $20,000–$30,000 | one time | Yes | single-pass | Item 11, p. 47 | Incurred from about 90 days before store opening until about 60 days after opening. [Listed by one verification pass only (B); not independently confirmed.] This is the only marketing spend CBAC can compel by amount; ordinary local advertising has no required minimum. |
| Loan Administration Fee | $2,500–$4,000 | one time | Yes | single-pass | Item 6, p. 22 | Due on the closing and funding of the startup loan (about 30 days before the Certificate of Occupancy). A further $2,500 applies on any refinance handled in house. [Listed by one verification pass only (B); not independently confirmed.] Note the inversion: arranging your own financing costs MORE than using the franchisor's service. |
All fees are payable to the franchisor and, except where Item 6 says otherwise, are non-refundable. The Unshared Expense mechanism is material: any expense the franchisor has not approved as a Shared Expense requires an equal additional royalty payment, and the franchise fee, renewal fee, transfer fee and transaction fee are all designated Unshared Expenses. Item 6 also lists additional training and support fees set by the franchisor at the time offered (none charged to date).
Financial performance (Item 19)
What the franchisor actually disclosedWho is represented: Franchisee-owned stores only; the system has no company-owned outlets. The primary tables cover the 302 franchisee-owned stores open and operating for all of calendar 2025, excluding the 24 stores opened during 2025. A parallel set of tables covers the 280 stores open for all of both 2024 and 2025, excluding the 22 stores opened in 2024 and the 24 opened in 2025. Figures come from unaudited financial statements and from sales reports and GAAP financial statements supplied by franchisees. Results of franchisees operating on legacy royalty terms or different approved owner salaries were restated to the current 50% Split Profits royalty and $60,000 approved owner salary.
Qualifications: The figures are unaudited and are compiled from franchisee-supplied statements. Only franchisee-owned stores open for a full calendar year are included: the 24 stores opened during 2025 are excluded from every table, and the 22 stores opened in 2024 are additionally excluded from the 280-store same-store tables. There are no company-owned outlets, so the tables represent 302 of the 326 franchised outlets open at year end. Results of franchisees on legacy royalty arrangements or different approved owner salaries were restated to the current 50% Split Profits royalty and $60,000 approved owner salary, so the figures do not all reflect what those franchisees actually paid or drew. Net Operating Income is stated before depreciation, amortisation and royalty expense, and Total Owner Benefit excludes the owner's health insurance and principal reduction on business debt; neither measure reflects debt service on the initial investment. Item 19 reports Net Sales, not gross receipts before discounts.
View full Item 19 disclosure and tables
This is a comparatively detailed Item 19. It reports both sales and cost/profit measures for the 302 franchisee-owned stores that were open for the whole of 2025 — average Net Sales of $2,865,872 and median $2,702,696, with 48% of stores at or above the average and a reported spread from $938,655 to $6,462,966. A same-store table for the 280 stores open all of 2024 and 2025 lets the two years be compared directly ($2,877,457 average in 2024 against $2,930,145 in 2025). Schedule 19.2 breaks results down by store age and gives cost of goods sold, gross profit, G&A and net operating income, and Schedule 19.3 gives Total Owner Benefit including top and bottom 20% cohorts. What it does not show is a bottom line after depreciation, amortisation, royalty and debt service: NOI is expressly stated before those items, and Total Owner Benefit excludes principal repayment on the business loan that funds the $515,250–$650,400 initial investment. Stores opened during the measurement year are excluded, so early-stage ramp-up is only visible through the 22-store first-full-year cohort, which averaged $2,047,857 in Net Sales and $283,504 in NOI. Five of the 302 stores had negative NOI in 2025.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| Net Sales — all franchised stores open all of 2025 48% of units met or exceeded 146 of 302 stores met or exceeded the average. | System (302 stores open the full year) Average | $2,865,872 | 302 | CY2025 | FDD p.67 |
| Net Sales — all franchised stores open all of 2025 | System (302 stores open the full year) Median | $2,702,696 | 302 | CY2025 | FDD p.67 |
| Net Sales — highest store in the top sales band (>= $4.5M) Highest single-store Net Sales reported in the 302-store table. | Top band of 14 stores High | $6,462,966 | 14 | CY2025 | FDD p.67 |
| Net Sales — lowest store in the bottom sales band (< $1.5M) Lowest single-store Net Sales reported in the 302-store table. | Bottom band of 8 stores Low | $938,655 | 8 | CY2025 | FDD p.67 |
| Net Sales — stores open all of both 2024 and 2025 46% of units met or exceeded 128 of 280 stores met or exceeded the average. | Same-store group (280 stores) Average | $2,930,145 | 280 | CY2025 | FDD p.67 |
| Net Sales — stores open all of both 2024 and 2025 | Same-store group (280 stores) Median | $2,742,612 | 280 | CY2025 | FDD p.67 |
| Net Sales — same 280 stores, prior year 49% of units met or exceeded 136 of 280 stores met or exceeded the average. Comparable to the $2,930,145 figure for the same stores in 2025. | Same-store group (280 stores) Average | $2,877,457 | 280 | CY2024 | FDD p.68 |
| Net Sales — same 280 stores, prior year | Same-store group (280 stores) Median | $2,745,881 | 280 | CY2024 | FDD p.68 |
| Net Sales — stores in their first full year of operation 50% of units met or exceeded Range $938,655 to $3,020,944; median $2,038,687. | 1st year stores (opened during 2024) Average | $2,047,857 | 22 | CY2025 | FDD p.69 |
| Net Sales — stores in their second full year 27% of units met or exceeded Median $2,449,771. | 2nd year stores (opened during 2023) Average | $2,728,527 | 15 | CY2025 | FDD p.69 |
| Net Sales — stores in their third full year 50% of units met or exceeded Median $2,661,154. | 3rd year stores (opened during 2022) Average | $2,683,085 | 18 | CY2025 | FDD p.69 |
| Net Sales — stores in their fourth full year 44% of units met or exceeded Median $2,818,838. | 4th year stores (opened during 2021) Average | $2,995,073 | 16 | CY2025 | FDD p.69 |
| Net Sales — stores open five years or more 42% of units met or exceeded Median $2,787,976; range $1,441,030 to $6,462,966. | 5th year+ stores (opened Aug 1982 – Dec 2020) Average | $2,957,991 | 231 | CY2025 | FDD p.69 |
Disclosed cost and profit figures
These figures are disclosed by the franchisor for the population stated in each row — often a subset (company-owned units, or franchisees who chose to report). They frequently exclude owner compensation, rent, debt service, taxes or royalties. They are not a prediction of your results.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| Gross profit — stores open five years or more Net Sales less cost of goods sold (technician labour, parts and sub-contracted labour/parts); average COGS for this group was $1,233,247. | 5th year+ stores Average | $1,724,744 | 231 | CY2025 | FDD p.69 |
| Gross profit — stores in their first full year Average COGS for this group was $844,700. | 1st year stores Average | $1,203,157 | 22 | CY2025 | FDD p.69 |
| General and administrative expenses — stores open five years or more Item 19 defines G&A as general overhead including rent, utilities, office salaries and taxes. | 5th year+ stores Average | $1,116,906 | 231 | CY2025 | FDD p.70 |
| General and administrative expenses — stores in their first full year | 1st year stores Average | $919,653 | 22 | CY2025 | FDD p.70 |
| Net operating income — stores in their first full year Range -$116,330 to $800,941; median $303,256. NOI is stated before depreciation, amortisation and both franchisor and owner royalty expense. | 1st year stores Average | $283,504 | 22 | CY2025 | FDD p.70 |
| Net operating income — stores open five years or more Range -$100,163 to $1,911,434; median $560,790. Stated before depreciation, amortisation and royalty expense. | 5th year+ stores Average | $607,838 | 231 | CY2025 | FDD p.70 |
| Stores with negative net operating income Two 1st-year stores, one 4th-year store and two 5th-year+ stores, ranging from -$38,440 to -$243,763. | System (302 stores open the full year) Count | 5 | 302 | CY2025 | FDD p.72 |
| Total Owner Benefit — all franchised stores open all of 2025 Total Owner Benefit is defined as owner's salary plus any cash distribution or bonus taken during the year; it excludes the owner's health insurance benefit and principal reduction on business debt. Range $60,000 to $993,699. | System (302 stores open the full year) Average | $310,322 | 302 | CY2025 | FDD p.71 |
| Total Owner Benefit — all franchised stores open all of 2025 | System (302 stores open the full year) Median | $282,274 | 302 | CY2025 | FDD p.71 |
| Total Owner Benefit — top 20% of performers Range $429,174 to $993,699; median $502,464. | Top 60 of 302 stores by Total Owner Benefit Average | $554,464 | 60 | CY2025 | FDD p.71 |
| Total Owner Benefit — bottom 20% of performers Range $60,000 to $179,384; median $131,019. | Bottom 60 of 302 stores by Total Owner Benefit Average | $126,280 | 60 | CY2025 | FDD p.71 |
| Total Owner Benefit — stores open all of both 2024 and 2025 Median $289,177. The same 280 stores averaged $324,730 (median $303,213) in 2024. | Same-store group (280 stores) Average | $319,978 | 280 | CY2025 | FDD p.71 |
| Total Owner Benefit — same 280 stores, prior year Median $303,213; range $60,393 to $1,056,942. | Same-store group (280 stores) Average | $324,730 | 280 | CY2024 | FDD p.72 |
System health (Item 20)
Outlets, openings, exits and transfers by fiscal year · U.S. onlyView detailed Item 20 tables and source notes
| Fiscal year | Start | Opened | Terminated | Not renewed | Reacquired | Ceased — other | End | Transfers | Company-owned (end) |
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 265 | 15 | 0 | 0 | 0 | 0 | 280 | 15 | 0 |
| 2024 | 280 | 22 | 0 | 0 | 0 | 0 | 302 | 19 | 0 |
| 2025 | 302 | 24 | 0 | 0 | 0 | 0 | 326 | 13 | 0 |
Disclosed 2026 Franchise Disclosure Document — Christian Brothers Automotive Corporation, Item 20, Tables 1–3 (PDF p. 73). Franchised outlets grew every year with no terminations, non-renewals, franchisor reacquisitions or other closures recorded in 2023, 2024 or 2025, and there were no company-owned outlets in any year. Two apparent typographical errors in the printed tables: Table No. 1's affiliate/company-owned rows are labelled 2022, 2023 and 2024 while the table heading reads 'For Calendar Years 2023 to 2025', and Table No. 3's heading reads 'For Calendar Years 2022 to 2024' while its data rows are 2023, 2024 and 2025. The years recorded here follow the data rows of Tables 1, 2 and 3, which agree with each other and with Item 19's store counts (302 stores open all of 2025 plus 24 opened during 2025 equals the 326 at year end). Item 20 also states that some current and former franchisees have signed provisions restricting their ability to speak about their experience with the franchisor.
Source data notes (8) — inconsistencies found in the FDD itself during verification
Our verification re-reads every table. Where the FDD's own printed tables disagree, we document the discrepancy rather than silently "fixing" it. Classes: B = arithmetic error in the source's derived column; C = the printed tables genuinely disagree; D = a legitimate definitional difference (e.g., transfers netted, explained by a footnote); E = unresolved ambiguity. Figures a material C/E issue puts in doubt are excluded from our derived metrics, scores and rankings.
- [C/minor] Table No. 3 2023: Table 3's 30 state rows for 2023 sum to 264 outlets at start of year and 16 opened, but the printed TOTAL row reads 265 start and 15 opened. Every state row is internally consistent (start + opened - closures = end) and both the state rows and the TOTAL row end 2023 at 280, so the two errors offset. — Source-document defect, confirmed against the rendered page images (pages 75-77), so not an extraction artifact. The TOTAL row is corroborated by Table No. 1, which shows franchised outlets 265 at start of 2023, 280 at end, net change +15; use 265 / 15 / 280. One unidentifiable state row understates start by 1 and overstates openings by 1 — the document gives no prior-year table that would isolate it. The 1-unit gap is 0.38% of start-of-year franchised units, below the 0.5% materiality threshold, and end-of-year units are unaffected.
- [C/minor] Table No. 2 2024: Table 2's 16 state rows for 2024 sum to 18 transfers (AL 1, AZ 1, AR 1, CO 2, FL 1, GA 2, IL 0, IN 0, KS 0, LA 1, MO 0, MT 0, NC 2, OH 1, TN 1, TX 5) but the printed TOTAL row reads 19. FY2023 (15) and FY2025 (13) foot exactly. — Source-document defect, verified against the rendered page images (pages 74-75): the state rows and the bold TOTAL row 2023 15 / 2024 19 / 2025 13 are printed as extracted. No other table in Item 20 reports transfers, so the 2024 TOTAL is not independently corroborated; the discrepancy is 1 transfer against 280 start-of-year franchised units (0.36%), below the materiality threshold, and cannot change growth, units or attrition because transfers are outlet-neutral. Report 2024 transfers as 19 per the printed TOTAL, flagged as not footing.
- [C/minor] Table No. 3: The Table 3 heading reads "Status of Franchised Outlets For Calendar Years 2022 to 2024", but every data row — state rows and TOTAL — is labelled 2023, 2024 and 2025. — Stale heading, almost certainly carried over from the prior year's filing; confirmed on the page image (page 75). The row years are correct: Table 3's TOTAL row (265 to 280, 280 to 302, 302 to 326) matches Table No. 1's franchised rows for 2023, 2024 and 2025 exactly, and Table No. 2 covers 2023-2025. Read Table 3 as 2023-2025 and ignore the heading.
- [C/minor] Table No. 1: Table 1 is headed "For Calendar Years 2023 to 2025" and its Franchised and Total Outlets blocks are labelled 2023/2024/2025, but the Affiliate or Company-Owned block between them is labelled 2022/2023/2024. — Printed year-label inconsistency inside the table. Every value in that block is 0, and Table No. 4 (Status of Company-Owned Outlets) correctly covers 2023-2025 with zeros in every column, so the underlying fact — no company-owned outlets at any time in 2023-2025 — is not in doubt and no total is affected.
- [E/minor] Table No. 3 vs Item 3: Table 3 reports 0 terminations, 0 non-renewals, 0 reacquisitions by franchisor and 0 ceased-operations-other in every state in all three years, and Table 4 shows no outlets reacquired from franchisees. Item 3 (page 14) discloses that an arbitration panel found on January 17, 2023 that CBAC properly terminated the Seek 1st LLC franchise agreement, that the agreement was terminated, and that CBAC paid off the franchisee's loan "in return for taking over and transitioning the CBA franchise to new ownership at CBAC's direction on February 1, 2023." — Unresolved from the document alone. The outlet kept operating under a new franchisee, so the event may legitimately sit inside the 15 transfers Table 2 reports for 2023, or it may be an omitted termination/reacquisition — Item 20 carries no footnote either way and neither reading can be confirmed from the FDD. Treat reported attrition of zero as possibly understated by one outlet for 2023 (0.38% of start-of-year franchised units); unit totals and net growth are unaffected because the outlet never left the system.
- [D/minor] Table No. 1 vs Table No. 3: Pass B observation: the Table 1 and Table 3 TOTAL rows agree exactly for all three years (265 to 280, 280 to 302, 302 to 326), and Table 3's opened counts (15, 22, 24) tie to Item 19's references to 22 stores opened in 2024 and 24 in 2025. — Not a defect — confirmatory. Verified on the page image for the Table 3 TOTAL row (page 77) and against Table 1. This corroboration is what keeps the two footing failures above at minor severity: the TOTAL-row figures the site uses are independently supported.
- [D/minor] Table No. 5: Pass B observation: Table 5 shows 97 franchise agreements signed with outlets not open against 28 projected openings in the next fiscal year — a backlog of roughly 3.5 years at the projected rate and larger than the 24 outlets actually opened in 2025. The cover page carries a state-mandated "Unopened Franchises" risk factor. — Not an inconsistency. Both Table 5 columns foot to their state rows (97 and 28), and the gap is a disclosed characteristic of the pipeline, already flagged by the cover-page risk factor rather than by any conflict between tables. No derived Item 20 metric changes.
- [D/minor] Table No. 5 vs Tables No. 2 and 3: Pass B observation: Nevada appears in Table 5 with 3 committed outlets but has no rows in Table 3 or Table 2. Table 3 covers 30 states; Table 2 lists only the 16 states with at least one transfer. — Legitimate table-definition difference. Table 5 lists states with signed but unopened commitments, Table 3 lists states with operating franchised outlets, and Table 2 lists only states with transfers — so Nevada's absence is consistent with CBAC having no operating outlet there yet. No figures affected.
Company-owned outlets (Table 4)
| Year | Start | Opened | Reacquired from franchisee | Closed | Sold to franchisee | End |
|---|---|---|---|---|---|---|
| 2023 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2024 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2025 | 0 | 0 | 0 | 0 | 0 | 0 |
Read: How to read Item 20.
Ownership and operations
Items 11, 12, 15, 17Owner-operator required Disclosed
- Source
- 2026 Franchise Disclosure Document — Christian Brothers Automotive Corporation
- Document
- FDD 2026, issued 2026-04-17
- Item
- Item 15
- Page
- PDF p. 60
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641042
CBAC requires that the “Principal Operator” or “You” personally supervise the Franchised Business.
The Principal Operator must personally supervise the franchised business and cannot delegate that role to a third party without the franchisor's written consent. A separate Service Manager must also supervise the business and assist with day-to-day operations; both must complete the franchisor's training. The business must be open 7:00 AM to 6:00 PM Monday to Friday, and the franchisee may not take on activities that interfere with these obligations. Neither the franchisee nor the franchisee's spouse may campaign for or hold public office during the franchise.
View operating requirements, territory and contract term
| Owner involvement (Item 15) | Owner-operator required Disclosed
The Principal Operator must personally supervise the franchised business and cannot delegate that role to a third party without the franchisor's written consent. A separate Service Manager must also supervise the business and assist with day-to-day operations; both must complete the franchisor's training. The business must be open 7:00 AM to 6:00 PM Monday to Friday, and the franchisee may not take on activities that interfere with these obligations. Neither the franchisee nor the franchisee's spouse may campaign for or hold public office during the franchise. The Principal Operator must personally supervise the franchised business and cannot delegate that role to a third party without the franchisor's written consent. A separate Service Manager must also supervise the business and assist with day-to-day operations; both must complete the franchisor's training. The business must be open 7:00 AM to 6:00 PM Monday to Friday, and the franchisee may not take on activities that interfere with these obligations. Neither the franchisee nor the franchisee's spouse may campaign for or hold public office during the franchise. |
|---|---|
| Initial training | Before opening, the Principal Operator must complete 60 hours of self-paced online training; a two-week (65-hour) programme at the franchisor's Houston, Texas offices or another designated location, which may be fully virtual; a four-week (230-hour) on-the-job programme at a Certified Training Location franchise; and a two-week (115-hour) programme at a franchise operated by a Certified Field Trainer. The Service Manager must complete a one-week (33-hour) programme in Houston or virtually. Both are on site about a week and a half before opening for a further 75 hours of on-location training and support. A three-day (20-hour) course in Houston follows between months 8 and 13 of operation, with further three-day (21.5-hour) courses around years 7 and 14. Mandatory courses carry no fee, but the franchisee pays all travel, room and board. Disclosed
|
| Multi-unit / development options | A multi-facility programme exists under which a franchisee may hold more than one Christian Brothers Automotive franchise, but Item 1 and Item 12 both state it is not available to new franchisees and it is offered under a separate disclosure document that was not part of the reviewed record. The franchisor reserves the right to limit franchisees to a maximum of three franchises and approves applicants case by case. Item 12 states a franchisee does not receive any right to acquire additional franchises within its area. Certain existing franchisees may also be offered an on-location vehicle service programme using a branded, outfitted vehicle within their territory. Disclosed
|
| Territory (Item 12) | The franchisee receives an exclusive geographic Territory defined in Exhibit A to the Franchise Agreement; size and shape vary. The franchisor will not operate or grant franchises for a similar or competitive business inside it, and the territory is not reduced if population grows. The franchisee operates from one location, currently may not relocate, may not advertise into another franchisee's territory and may not sell through the internet, catalogue, telemarketing or other alternative channels — channels the franchisor reserves for itself without compensating the franchisee. Territorial and franchise rights are conditioned on Minimum Performance Requirements: after the first year, a rolling six months of positive Net Ordinary Income (at least $1), and Net Ordinary Income must not fall 30% or more below the mean of all mature franchises for three consecutive years. Failure allows the franchisor to terminate or to place the franchisee in its Distressed Store Support Program. Disclosed
|
| Initial term | 15 years Disclosed
A buyer of an existing location takes the remaining term of the seller's agreement but must sign a restated agreement on the current form. The sublease of the premises also runs 15 years. |
| Renewal | Three consecutive renewal terms of five years each, subject to the conditions in Sections 3.02–3.08. On renewal the franchisee must sign the then-current form of franchise agreement, which Item 17 says will contain terms materially different from the existing agreement, and pay a renewal fee of 10% of the initial franchise fee then charged for the most recently sold franchise. Disclosed
|
| Staffing | The franchised business must be open from 7:00 AM to 6:00 PM Monday through Friday. In addition to the Principal Operator, a Service Manager is required; the Service Manager may not have an interest in or business relationship with a competitor and may be required to sign confidentiality and non-compete covenants. The FDD does not state a total headcount for a location. Disclosed
|
Risk and legal observations
Items 3, 4, 8, 15, 17 — summarized neutrallyLitigation: 2 matter(s) disclosed Disclosed · Bankruptcy: None disclosed Disclosed
View legal disclosures, restrictions and guarantees
| Litigation (Item 3) | 2 matter(s) disclosed Disclosed Two matters are disclosed. One is pending: a 2022 federal suit in the Southern District of Texas by an individual who alleged the franchisor violated 42 U.S.C. 1981 and the Texas Deceptive Trade Practices Act by declining to let him purchase a franchise. The state-law claims were dismissed earlier; the court granted the franchisor summary judgment in full and dismissed the case with prejudice in September 2025, and the plaintiff's appeal to the Fifth Circuit was filed in November 2025 and remains open. The second, concluded, matter is an arbitration the franchisor brought in 2022 against a franchisee entity over the acquisition and operation of a competing business. The panel found in January 2023 that the franchisor properly terminated the franchise agreement, also enforced the franchisor's earlier settlement offer and awarded the respondent part of its legal expenses; the franchisor paid off the franchisee's business loan and transitioned the location to new ownership. No franchisee-initiated litigation is disclosed. |
|---|---|
| Bankruptcy (Item 4) | None disclosed Disclosed Item 4 states that no bankruptcy is required to be disclosed. |
| Personal guaranty | Required Disclosed
Item 15 requires the franchisee's spouse to sign a spousal acknowledgement and joinder to the Franchise Agreement, and the FDD's state-required Special Risk statement on the cover describes this as making the spouse liable for all financial obligations under the agreement even without an ownership interest. The form Distressed Store Support Program Agreement in the exhibits also refers to guarantors of the Franchise Agreement. Item 17's table has no separate guaranty row, so the exact scope of an owner guaranty is not set out in the disclosure items themselves. |
| Non-compete | During the term, neither the franchisee nor its partners, principals, employees or contractors may be involved in other similar businesses. After termination or expiry, a covenant bars competing with the franchisor for three years from the termination date, subject to state law; Item 17 does not state a geographic radius. A separate Nonuse, Nondisclosure and Non-Competition Agreement is signed before the franchise agreement, at the point the franchisor releases its training materials and operations manual. Item 6 provides liquidated damages for breach of the confidentiality or non-compete obligations equal to the average monthly royalty over the prior 12 months multiplied by the lesser of 48 months or the months remaining in the term. Disclosed
|
| Transfer restrictions | The franchisor must approve every transfer but says it will not unreasonably withhold approval. Conditions include the buyer qualifying, application costs and transfer fees being paid, the buyer completing training and signing the current agreements, and the seller signing a release. The franchisor holds both a right of first refusal and an option to purchase the business, and on death or disability the estate must obtain approval of a transfer or give the franchisor the chance to buy. The cost of exit is substantial: a $30,000 transfer fee, a transaction fee of the greater of 7% of the gross transaction value or $50,000 if the franchisor sources the buyer, and a Sale Event Royalty Fee equal to 50% of net sale proceeds payable to the franchisor at closing. Disclosed
|
| Termination / non-renewal | The franchisee may terminate only under a mutual written termination agreement. The franchisor may terminate for breach of material obligations; non-monetary defaults must be cured within 15 days of notice and past-due monetary defaults within 5 days, while defaults such as bankruptcy, improper distribution of funds or illegal activity are non-curable and allow immediate termination with no notice or cure. There is no franchisor right to terminate without cause. Separately, Item 12's Minimum Performance Requirements allow termination if the franchisee fails to maintain a rolling six months of positive Net Ordinary Income or lets Net Ordinary Income fall 30% or more below the mean of mature franchises for three consecutive years; the franchisor may instead place the franchisee in its Distressed Store Support Program, which sets quarterly deficiency-reduction targets and a $10,000 NOI target. The franchisor also has step-in rights to install an interim manager at $5,000 a month plus costs. Disclosed
|
| Supplier restrictions (Item 8) | All services, furniture, fixtures, equipment, inventory, supplies and other materials needed to develop and operate the facility must be bought from the franchisor or from suppliers it designates or approves, and the franchisor may make itself or an affiliate the exclusive supplier of any item. Before opening, the franchisee must buy roughly $270,000 to $300,000 of equipment, furniture and software from the franchisor, rebilled at the franchisor's cost. The franchisee must also lease or sublease the land and building from the franchisor. Alternative suppliers require written approval, which the franchisor may withhold or withdraw and which it does not charge for. For the year ended December 31, 2025 the franchisor's total revenue was $162,439,355, of which $66,437,449 (about 40.9%) came from franchisee lease and sublease payments, $3,068,913 (about 1.9%) from accounting and IT services to franchisees, and $365,659 from equipment and related product purchases; it also received $1,101,792 in vendor rebates. The FDD says the franchisor has no affiliates currently selling or leasing required products or services. Disclosed
|
| Dispute resolution | All disputes must be arbitrated in Houston, Texas under American Arbitration Association rules, and any litigation must also be in Houston; Texas law applies, in each case subject to state law. Mediation is optional. Either party may seek injunctive relief from a court in specified circumstances. The cover pages carry a state-required Special Risk statement that out-of-state dispute resolution may cost more and may push a franchisee toward a less favourable settlement. Disclosed
|
- The royalty is a 50% share of 'Split Profits' rather than a percentage of sales, and the franchisor defines and can change the 'Shared Expenses' that are deducted before the split; any expense it does not approve as a Shared Expense triggers a matching royalty payment.
- Owner compensation is capped as a Shared Expense at $60,000 a year combined for the franchisee, spouse and household dependents.
- The franchisee must lease the land and building from the franchisor for 15 years at roughly $22,000–$38,000 a month base rent plus triple-net costs, escalating 1.5% a year; lease and sublease payments were about 40.9% of the franchisor's 2025 revenue.
- Minimum sales/profit performance is required to keep the franchise and territory, and the cover pages carry two state-required 'Sales Performance Required' risk statements.
- 97 franchise agreements had been signed with outlets not yet open at December 31, 2025, and the cover carries a state-required 'Unopened Franchises' risk statement about opening delays.
- Exiting is expensive: a $30,000 transfer fee, a possible transaction fee of the greater of 7% of transaction value or $50,000, and a Sale Event Royalty Fee of 50% of net sale proceeds.
- The franchisor may exercise step-in rights and install an interim manager at $5,000 a month plus expenses, including on the death or disability of the Principal Operator.
- Item 20 notes that some current and former franchisees have signed provisions restricting their ability to speak openly about their experience with the franchisor.
- Neither the franchisee nor the franchisee's spouse may campaign for or hold public office while the franchise is in effect.
Summaries are neutral paraphrases of the cited document and are not legal advice. Read the full Items in the current FDD and consult a franchise attorney.
Illustrative unit economics
Model estimateNo calculator for this brand: the Continuing Royalty Fees is charged on split profit, not sales — a revenue-driven model would misstate it. The disclosed fees are listed in the fee table above; modeling them against a revenue slider would misstate the economics rather than illuminate them.
Sources and provenance
Primary source: 2026 Franchise Disclosure Document — Christian Brothers Automotive Corporation · issued 2026-04-17. Find the FDD at Wisconsin Department of Financial Institutions — Franchise Registration Search. We cite source pages and do not redistribute PDFs.
View all sources, provenance and verification notes
| Document | Obtained from | Dates | Status |
|---|---|---|---|
| 2026 Franchise Disclosure Document — Christian Brothers Automotive Corporation Registry file 641042 · 423 pages Cover reads 'Issuance Date: April 17, 2026'; running footer reads 'FDD-Christian Brothers Automotive-2026v1'. Wisconsin registration effective 4/17/2026 and shown as Registered; this is the newest document available in that registry. Item 1 notes a separate FDD exists for the multi-facility program, which was not reviewed. | Wisconsin Department of Financial Institutions — Franchise Registration Search | Issued 2026-04-17 Retrieved 2026-08-29 | Newest available at retrieval |
AI-assisted extraction from the archived FDD text, independently machine-verified against the cited source (two passes plus tie-break); not human-reviewed. Extracted 2026-08-29. Last updated 2026-09-05. AI-assisted extraction independently machine-verified against the cited source document (2026-08-30): two independent AI reading passes plus tie-break re-inspection of every disagreement; 72 of 77 material fields confirmed (68 with the exact page citation re-confirmed), 1 corrected, 0 unresolved, 5 confirmed not disclosed. No human has reviewed this profile. Fiscal year covered: FY2025 (Dec 31, 2025). See how we use AI and verify data.
Fields flagged as uncertain (4)
- fees.local_marketing
- risk.personal_guaranty
- item20.us_only
- units.us_only
Extraction notes (11)
- Item 19's tables are embedded in the PDF as images with no text layer, so pdftotext produced empty schedules. Every Item 19 figure here was read directly from the table images extracted from PDF pages 67–72; the surrounding narrative and notes came from the text layer.
- Item 19 arithmetic was cross-checked and foots: the five store-age cohorts (22 + 15 + 18 + 16 + 231) sum to 302 stores and their Net Sales averages weight to the reported $2,865,872 AUV, and in every cohort Net Sales − COGS = Gross Profit and Gross Profit − G&A = Net Operating Income within $1 of rounding.
- Item 20 Table No. 1's affiliate/company-owned rows are labelled 2022–2024 while the table heading reads 'For Calendar Years 2023 to 2025', and Table No. 3's heading reads 'For Calendar Years 2022 to 2024' while its rows are 2023–2025. Both look like typographical errors; the years recorded follow the data rows, which reconcile across Tables 1, 2 and 3 and with Item 19's counts.
- Item 19 reports 'Net Sales', defined as gross revenue from labour, parts and sub-contracted labour/parts and supplies less labour/parts discounts. It is a revenue measure and is recorded as headline_auv; the profit measures (gross profit, G&A, NOI, Total Owner Benefit) are flagged with is_profit_metric.
- fees.local_marketing records the franchisor's suggested local advertising spend of 1%–2% of annual gross revenue after the first two years. Item 11 states no required minimum exists today, though the franchisor may set one and may require up to $30,000 of new-store-opening marketing; the field is flagged as uncertain for that reason.
- fees.technology records only the approximately $11,000 a year software maintenance/licence fee; the $200 a month IT support fee and about $725 a month operating systems and internet failover charge are listed under fees.other_recurring to avoid double counting or inventing a combined figure.
- No minimum liquid capital or net worth requirement for franchisees appears on the cover pages or in Items 1, 5, 7, 11 or 15; both fields are recorded as not disclosed rather than filled from any outside source.
- risk.personal_guaranty is recorded as true on the basis of the Item 15 spousal acknowledgement and joinder requirement and the cover's state-required Special Risk statement about spousal liability; the Item 17 table contains no separate guaranty row, so the precise scope of an owner guaranty was not verified in the disclosure items.
- us_only is set true for units and Item 20 because every outlet in Item 20's Tables 3, 4 and 5 is in a U.S. state and no non-U.S. outlets are disclosed; the FDD does not state a U.S.-only limitation in those words.
- Item 1 discloses a separate multi-facility programme with its own disclosure document, not available to new franchisees; that document was not reviewed and no alternative Item 7 format tables appear in this FDD.
- Verification 2026-08-30: correct /fees/local_marketing {'value': 1, 'unit': 'pct_gross_sales', 'range_high': 2} → None
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