What is the estimated cost range for insurance and business licenses for a Christian Brothers Automotive franchise?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type Of Expenditure | Amount (Note 13, 16 and 17) | Method Of Payment (Note 14 And 15) | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| INITIAL FRANCHISE FEE | $135,000 (Note 1) $121,500 with IFA VetFran Program Discount (Note 1) | a) $85,000 b) $50,000 With Discount: a) $85,000 b) $36,500 (Note 1) | a) See Note 1 b) See Note 1 | CBAC (Note 1) |
| REAL ESTATE AND IMPROVE- MENTS | $0 at |
Source: Item 7 — INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the estimated initial investment for insurance and business licenses ranges from $15,000 to $60,000. This cost can typically be financed with monthly payments, according to agreements with insurance companies.
The FDD specifies that franchisees must carry all forms of insurance required by law, the Franchise Agreement, commercial lease, lender requirements, or as specified by Christian Brothers Automotive. Minimum insurance types include workers compensation, property/casualty, renter's coverage, errors and omissions, general liability, and potentially life insurance if required by a lender. Christian Brothers Automotive mandates general liability business coverage limits of at least $2,000,000.
The premiums for these insurance policies will vary based on the insurance company, projected volume, fees, loss history, and experience rate. If a franchisee finances any part of their business, the lender may require additional insurance coverage, further impacting the overall cost.
Prospective franchisees should carefully consider these insurance requirements and obtain quotes from multiple providers to understand the potential costs in their specific circumstances. Understanding these costs is crucial for accurate financial planning when starting a Christian Brothers Automotive franchise.