How does Christian Brothers Automotive define 'Net Sales' in Schedule 19.2?

According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, Schedule 19.2 provides financial performance results for Christian Brothers Automotive stores, categorized by the age of the business. These categories include 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.

For Christian Brothers Automotive, 'Net Sales' is defined as the total gross revenue from labor, parts, and sub-contracted labor/parts and supplies. From this gross revenue, any labor/parts discounts are subtracted to arrive at the net sales figure. This net sales figure is a key metric for franchisees as it represents the actual income generated from sales after discounts are applied.

Understanding this definition is crucial for prospective Christian Brothers Automotive franchisees because it clarifies what constitutes revenue for the purpose of calculating royalties and other financial metrics. Franchisees should pay close attention to how discounts are accounted for, as this directly impacts the reported net sales and, consequently, the financial performance of their location. This definition provides a clear and standardized way to measure sales performance across all Christian Brothers Automotive locations.