At what cost are equipment purchases rebilled to the Christian Brothers Automotive franchisee?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to opening, you must purchase certain equipment, furniture and software from CBAC that will be used to operate the franchise. This will include the equipment listed in our Confidential Operations Manual and the software described below, at a current total cost of approximately $255,000 to $280,000. The equipment is purchased by us in order to obtain better pricing than individual purchasers could obtain, mitigate supply chain risk, and coincide with construction timelines. All equipment purchases will be rebilled to you at our cost, including any associated fees from the vendor.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 33–36)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, franchisees are rebilled for equipment purchases at the franchisor's cost, including any associated vendor fees. Prior to opening their franchise, franchisees must purchase certain equipment, furniture, and software from Christian Brothers Automotive. This includes equipment listed in the Confidential Operations Manual and specific software, with the total cost currently estimated between $255,000 and $280,000. Christian Brothers Automotive purchases the equipment to secure better pricing, mitigate supply chain risks, and align with construction timelines.
This arrangement means that Christian Brothers Automotive franchisees will pay the same price Christian Brothers Automotive paid for the equipment, plus any fees charged by the vendor. This policy aims to provide franchisees with cost savings and logistical benefits by leveraging the franchisor's purchasing power and supply chain management. However, franchisees should verify that the 'cost' charged by Christian Brothers Automotive is indeed equivalent to the price they paid to the vendor, without any hidden markups.
While the FDD states that equipment is rebilled at cost, it is important for prospective franchisees to understand how Christian Brothers Automotive defines and calculates this cost. Franchisees should request a detailed breakdown of equipment costs and vendor fees to ensure transparency. Additionally, franchisees should confirm whether they have any input into the selection of equipment or vendors, or if these decisions are made solely by Christian Brothers Automotive. Understanding these details will help franchisees accurately assess their initial investment and manage their ongoing expenses.