What was the fair value of the inventory acquired in the Christian Brothers Automotive franchise acquisition?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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In September 2023, CBAC acquired 100% ownership of WWK Warranty and Administration LLC, (WWK). WWK, a wholly owned subsidiary of the Company, works in conjunction with dealerships to provide vehicle service contracts and maintenance coverage for their customers.
In March 2024, CBAC formed Nice Difference Care+ (Care+) to provide extended warranty services for repairs, maintenance and vehicle care at Christian Brothers Automotive franchise locations. Care+ is wholly owned by CBAC and have been consolidated within the financial statements of CBAC.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
I am unable to provide the fair value of inventory acquired in the Christian Brothers Automotive franchise acquisition, based on the excerpts from the 2025 Franchise Disclosure Document. While the document discusses the company's acquisitions, such as the 2023 acquisition of WWK Warranty and Administration LLC, and the 2024 acquisition of a 44% ownership stake in Foedus Sui, LLC, it does not specify the fair value of inventory acquired in these transactions. The FDD excerpts do describe how fair market value is determined in the context of the franchisor purchasing assets from a franchisee upon termination of the agreement, but this is distinct from acquisition accounting.
For a prospective Christian Brothers Automotive franchisee, this means that the FDD excerpts do not offer insight into the valuation of acquired inventory as part of the company's overall financial activities. Understanding these values would be useful for assessing the financial health and strategic decisions of the franchisor.
To gain clarity, a potential franchisee should directly ask Christian Brothers Automotive about the valuation methods used for inventory in acquisitions, and request specific figures related to past acquisitions. This information would provide a more complete picture of the company's financial practices.