What was the approximate total of Christian Brothers Automotive's contract liabilities at December 31, 2022?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
regated by major business activity for the years ended December 31:
| Long-term debt and subordinated debt were as follows at December 31: | | | |---|---|---| | | 2024 | 2023 | Contract liabilities include franchise fees received prior to store opening. T
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the total contract liabilities at December 31, 2022, were approximately $8,994,000. These contract liabilities primarily consist of franchise fees that Christian Brothers Automotive has received before a new store opens. This deferred revenue represents Christian Brothers Automotive's obligation to provide services or fulfill other requirements related to those initial franchise fees.
For a prospective Christian Brothers Automotive franchisee, this figure indicates the scale of financial obligations the franchisor holds. It reflects the amount of money Christian Brothers Automotive has already collected from franchisees for which they still have a service obligation. The increase to $11,148,000 by December 31, 2023, suggests growth in franchise sales and associated pre-opening fees.
Understanding the trend in contract liabilities can provide insight into the company's growth trajectory and its ability to manage its obligations to new franchisees. Franchisees may want to inquire about how Christian Brothers Automotive manages these liabilities and ensures that it can meet its obligations to new franchisees in a timely manner.