What was the compensation expense associated with ESOP for Christian Brothers Automotive in 2023?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
lders' equity | $ 663,061,823 | $ 576,351,339 |
Consolidated Statements of Income Years Ended December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| Revenues | $ 137,196,643 | $ 122,309,502 |
| Operating Costs and Expenses | ||
| Cost of revenues | 42,731,504 | 40,601,283 |
| Selling, general and administrative expenses | 50,507,014 | 41,565,152 |
| Compensation e |
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the compensation expense associated with their Employee Stock Ownership Plan (ESOP) in 2023 was $10,121,713. This figure reflects the cost recognized by Christian Brothers Automotive for compensating employees through the ESOP program during that year.
For a prospective franchisee, understanding this expense is crucial as it provides insight into the overall financial health and employee compensation strategies of Christian Brothers Automotive. The ESOP compensation expense is part of the operating costs and expenses, which totaled $103,360,231 in 2023. This number, in turn, impacts the net income of the company.
Reviewing these figures over multiple years, as presented in the FDD, allows potential franchisees to identify trends and assess the stability and profitability of Christian Brothers Automotive. A significant fluctuation in ESOP compensation expenses could signal changes in employee benefits or the company's financial strategy, which would warrant further investigation.
Overall, while the ESOP compensation expense itself may not directly affect a franchisee's day-to-day operations, it is an important component of the broader financial picture that helps in evaluating the franchise's long-term viability and management approach.