What is the estimated payment range 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 startup, but monthly thereafter (Note 1 and Note 2) | Monthly rent | First day of the month | CBAC |
| EQUIPMENT, FURNITURE AND SOFTWARE | $255,000 to $280,000 (Note 3) | Cash As Purchased, invoiced by CBAC | Prior to opening Franchised Business, upon receipt of invoice | Equipment Vendors and/or CBAC (Note 3) |
| SHUTTLE VEHICLE | $30,000 to $50,000 (Note 4) | Auto finance/Lease program | Prior to opening Franchised Business | Dealership vendor/individual seller |
| SHUTTLE VEHICLE WRAP | $1,750 to $3,400 (Note 4) | Auto finance/Lease program | Prior to opening Franchised Business | Third party wrap vendor |
| INVENTORY | $11,000 to $12,000 (Note 6) | Cash As Purchased | Prior to opening and then as needed | Suppliers |
| SECURITY DEPOSITS | $5,000 (Note 7) | Lump Sum | Prior to opening Franchised Business | Local utility companies |
| SIGNS | $0 (Note 5) | Provided through Franchisor and Real Estate Lease | ||
| 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 |
| INSURANCE & BUSINESS LICENSE | $15,000 to $60,000 (Note 8) | Per Agreement with Insurance Companies | Can be prior to opening Franchised Business but is usually financed with a monthly payment | Insurance Companies |
| MARKETING/ ADVERTISING | $35,000 to $40,000 incurred during your first year in business (Note 9) | When required by Advertising Suppliers | Start-up, monthly, or otherwise, per agreement with advertisers | Advertisers and Suppliers |
| NEW STORE OPENING MARKETING/ ADVERTISING | $20,000 to $30,000 (Note 10) | By Advertising suppliers | Starting 90 days prior to store opening until 60 days after store opening | Advertisers and Suppliers |
| PRE-OPENING TRAINING TRAVEL/ SALARY | $7,500 to $10,000 (travel for training) (Note 11) | General travel expenses such as flight, rental car, hotel and food costs for approximately 45-60 days. | Starting approximately 90 days prior to store opening and will be needed for a period of approximately 45- 60 days. | Airline, car rental agency, hotel, restaurants and your salary if needed |
| OTHER PAYMENTS | $5,000 to $15,000 (Note 12) | Cash at purchase and/or included in business loan | Prior to applying for commercial financing | CBAC, bank of your choosing, Federal Govt and other 3rd party vendors |
| ADDITIONAL FUNDS DURING INITIAL 3 MONTHS | $30,000 to $40,000 (Note 13) | General operational expenses such as office supplies, employees, vendors and utilities | First three months of operations | Vendors, suppliers, employees and utility companies |
| TOTAL | $550,250 to $680,400 (Note 14) |
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 total initial investment ranges from $550,250 to $680,400. This total encompasses various expenditures that a new franchisee can expect to incur when starting their business. These expenses include the initial franchise fee, real estate and improvements, equipment, furniture, software, a shuttle vehicle, shuttle vehicle wrap, inventory, security deposits, signs, insurance and business licenses, marketing and advertising, pre-opening training travel and salary, other payments, and additional funds during the initial three months of operation.
The initial franchise fee is $135,000, but it may be $121,500 with the IFA VetFran Program Discount. Equipment, furniture, and software costs range from $255,000 to $280,000. A shuttle vehicle will cost between $30,000 and $50,000, plus an additional $1,750 to $3,400 for the vehicle wrap. Inventory costs are estimated to be between $11,000 and $12,000, while security deposits are listed at $5,000. Insurance and business licenses are estimated to cost between $15,000 and $60,000 per year.
Christian Brothers Automotive franchisees should also budget for marketing and advertising, with approximately $35,000 to $40,000 incurred during the first year in business, plus an additional $20,000 to $30,000 for new store opening marketing and advertising. Pre-opening training travel and salary are estimated to cost between $7,500 and $10,000. Other payments could range from $5,000 to $15,000, and additional funds during the initial three months could range from $30,000 to $40,000.
Prospective franchisees should carefully review each of these estimated costs with a business advisor, as these figures are estimates and Christian Brothers Automotive does not guarantee that franchisees will not incur additional expenses. These costs can vary based on location, specific business circumstances, and discretionary spending choices made by the franchisee. Understanding these initial investment components is crucial for planning and securing adequate funding for a new Christian Brothers Automotive franchise.