As of December 31, 2024, what was the weighted-average remaining lease term for Christian Brothers Automotive?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
t fair value): | | |---|---| | Fair value of cash consideration transferred | $2,204,000 | The amount of expense incurred during the years ended December 31, 2024 and 2023, pertaining to operating leases is approximately $50,553,000 and $45,584,000, respectively.
As of December 31, 2024 and 2023, the weighted-average remaining lease term was 11.16 years and 11.07 years, respectively. The right-of-use assets and lease liabilities were calculated using a weight
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, as of December 31, 2024, the weighted-average remaining lease term was 11.16 years. This means that, on average, the remaining duration of the leases for Christian Brothers Automotive locations was approximately 11 years and 2 months.
For a prospective franchisee, this indicates the typical length of lease commitments Christian Brothers Automotive undertakes for its locations. Understanding the lease term is crucial because it represents a significant fixed obligation. Franchisees need to factor this long-term commitment into their financial planning and assess whether the lease terms align with their business strategy and financial capabilities.
Additionally, the 2025 FDD states that the amount of expense incurred during the year ended December 31, 2024, pertaining to operating leases is approximately $50,553,000. The right-of-use assets and lease liabilities were calculated using a weighted-average discount rate of 2.99% as of December 31, 2024. This information provides insight into the scale of lease obligations Christian Brothers Automotive manages and the financial considerations associated with these leases.
It's important for potential franchisees to discuss lease terms and conditions with Christian Brothers Automotive during their due diligence. Understanding the specifics of lease agreements, including renewal options and potential rent escalations, is essential for making informed investment decisions.