Besides franchising, what other business does Christian Brothers Automotive engage in?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
olicies**
Christian Brothers Automotive Corporation (CBAC or the Company), a Texas subchapter S corporation, is a national franchisor of automobile repair establishments located throughout the United States of America. CBAC was formed in August 1982 and had 302 and 281 independent franchises in operation at December 31, 2024 and 2023, respectively. In addition to franchising operations, CBAC engages in the business of investing in, owning and selling the real estate and facilities from which its franchise locations operate. These real estate sales are typically made to third parties, some of which are under saleleaseback agreements.
On December 31, 2022, the Company's Board of Directors declared the 2022 Stock Split. Each shareholder of record on August 31, 2022 received a dividend of 834.342222 additional shares of common stock for each then-held share, distributed after the close of trading on December 31, 2022. All share and per share amounts presented herein have been retroactively adjusted to reflect the impact of the 2022 Stock Split.
In September 2023, CBAC acquired 100% ownership of WWK Warranty and Administration LLC, (WWK). WWK, a wholly owned subsidiary of the Company, works in conjunction with dealerships to provide vehicle service contracts and maintenance coverage for their customers.
In March 2024, CBAC formed Nice Difference Care+ (Care+) to provide extended warranty services for repairs, maintenance and vehicle care at Christian Brothers Automotive franchise locations. Care+ is wholly owned by CBAC and have been consolidated within the financial statements of CBAC.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, in addition to franchising, Christian Brothers Automotive engages in several other business activities. Specifically, the company invests in, owns, and sells real estate and facilities from which its franchise locations operate, often through sale-leaseback agreements with third parties.
Christian Brothers Automotive also has subsidiaries involved in vehicle service contracts and extended warranty services. In September 2023, Christian Brothers Automotive acquired WWK Warranty and Administration LLC, which provides vehicle service contracts and maintenance coverage through dealerships. In March 2024, they formed Nice Difference Care+ to offer extended warranty services for repairs, maintenance, and vehicle care at Christian Brothers Automotive franchise locations.
Furthermore, in August 2024, Christian Brothers Automotive acquired a 44% ownership stake in Foedus Sui, LLC, which is classified as a variable-interest entity. Christian Brothers Automotive consolidates Foedus in its financial statements, indicating a controlling interest through financial and contractual arrangements. These activities demonstrate that Christian Brothers Automotive has diversified its business beyond franchising into real estate, warranty services, and related ventures within the automotive industry.