What was the amount of the operating lease liability, long-term, for Christian Brothers Automotive in 2024?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
ments December 31, 2023 and 2022
7. Leases
The following table summarizes the operating lease right-of-use assets and operating lease liabilities as of December 31, 2023 and 2022:
| 2023 | 2022 | |
|---|---|---|
| Operating lease right-of-use assets | $ 395,708,000 | $ 3 |
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the long-term operating lease liabilities for 2023 was $382,496,000. This figure represents the company's obligation for leases extending beyond one year. It is important to note that this liability is calculated using a weighted-average discount rate of 2.44% as of December 31, 2023.
Operating lease liabilities are a common financial obligation for businesses, especially those that lease property or equipment rather than purchasing them outright. For Christian Brothers Automotive, a significant portion of this liability likely stems from leasing the real estate and facilities used by its franchise locations. The company often invests in, owns, and sells these properties, sometimes entering into sale-leaseback agreements.
Prospective franchisees should understand the implications of these lease liabilities, as they reflect a substantial financial commitment by Christian Brothers Automotive. While the long-term lease liabilities are reported for 2023, the FDD does not provide the exact figure for 2024. Instead, the document provides the scheduled future minimum lease payments for years ending after December 31, 2024. This includes $47,915,000 for 2024, $47,730,000 for 2025, and subsequent amounts for later years. The total lease liabilities, less the present value discount and current portion, amount to $382,496,000.
To gain a clearer picture of Christian Brothers Automotive's financial health and lease obligations, prospective franchisees should request the complete financial statements and consult with a financial advisor. Understanding the nature and extent of these liabilities is crucial for assessing the overall risk and potential return on investment in a Christian Brothers Automotive franchise.