How does Christian Brothers Automotive define 'Gross Profit (GP)' in Schedule 19.2?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Schedule 19.2 provides results for the included CBA stores by age of the business in 6 distinct categories: Net Sales, Cost of Goods Sold (COGS), Gross Profit (GP), General & Administrative Expenses (G&A), Net Operating Income (NOI) and Total Owner Benefit (TOB) for the year ending December 31, 2024. Net Sales is defined as all gross revenue derived from labor, parts and sub-contracted labor/parts and supplies, less labor/parts discounts. Cost of Goods Sold (COGS) is defined as all technician labor, parts costs and all sub-contracted labor/parts associated with Net Sales. Gross Profit (GP) is defined as profit after COGS are paid, but before G&A Expenses are paid. General and Administrative Expenses (G&A) is defined as general overhead expenses for the business including, but not limited to, rent, utilities, office salaries, taxes, etc. NOI is defined as income (earnings) before depreciation, amortization, royalty expense – franchisor and royalty expense – franchisee/owner. 1st Year Stores are defined as opened between January 1, 2023 and December 31, 2023. 2nd Year Stores are defined as opened between January 1, 2022 and December 31, 2022. 3rd Year Stores are defined as opened between January 1, 2021 and December 31, 2021 and 4th Year Stores are defined as opened between January 1, 2020 and December 31, 2020. 5th Year + Stores are defined as opened between August 1, 1982 and December 31, 2019. 3 of the 280 stores had a negative NOI in 2024 (-$40,399 NOI), a 1st Year Store. (-$31,994 NOI), a 3rd Year Store, and (-$90,251 NOI), a 5th Year +
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 62–69)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Schedule 19.2 provides financial performance results for Christian Brothers Automotive stores categorized by the age of the business. One of the key metrics presented is Gross Profit (GP). Christian Brothers Automotive defines Gross Profit (GP) as the profit remaining after Cost of Goods Sold (COGS) are paid but before General & Administrative Expenses (G&A) are paid.
For a prospective Christian Brothers Automotive franchisee, understanding this definition is crucial for interpreting the financial performance data provided in Schedule 19.2. It allows them to see how efficiently a store manages its direct costs (COGS) to generate initial profits before considering overhead expenses (G&A).
Schedule 19.2 includes data for stores in operation for different durations (1st year, 2nd year, 3rd year, 4th year, and 5th year+). For example, the average Gross Profit for 1st year stores is $1,310,361, while the average Gross Profit for stores open 5 years or more is $1,706,616. This information can help a potential franchisee understand the typical progression of gross profitability as a Christian Brothers Automotive business matures. By comparing the Gross Profit (GP) to other expenses, a franchisee can better estimate potential net earnings.