What were the gains on sale of leased properties for Christian Brothers Automotive in 2022?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
lders' equity | $ 663,061,823 | $ 576,351,339 |
Consolidated Statements of Income Years Ended December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| Revenues | $ 137,196,643 | $ 122,309,502 |
| Operating Costs and Expenses | ||
| Cost of revenues | 42,731,504 | 40,601,283 |
| Selling, general and administrative expenses | 50,507,014 | 41,565,152 |
| Compensation expense associated with ESOP | 10,121,713 | 14,206,798 |
| Total operating costs and expenses | 103,360,231 | 96,373,233 |
| Income from operations | 33,836,412 | 25,936,269 |
| Other Income (Expense) | ||
| Gains on sale-leaseback transactions | 2,044,287 | 920,683 |
| Gains on sale of leased properties | 3,613,496 | 13,994,953 |
| Interest income | 1,234,707 | 859,510 |
| Interest expense | (6,596,136) | (2,497,171) |
| Other income, net | (293,984) | 467,395 |
| Total other income, net | 2,370 | 13,745,370 |
| Net income before state income taxes | 33,838,782 | 39,681,639 |
| State Income Tax Expense | (1,799,431) | (1,535,256) |
| Net income | 32,039,351 | 38,146,383 |
| Less net income attributable to noncontrolling interest | (592,784) | (11, |
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the gains on the sale of leased properties in 2022 were $13,994,953. This indicates the revenue Christian Brothers Automotive generated from selling properties that were under lease agreements during that year.
For a prospective franchisee, this figure is relevant because it provides insight into Christian Brothers Automotive's real estate investment and sales activities. The company actively invests in, owns, and sells real estate and facilities used by its franchise locations, often through sale-leaseback agreements. This strategy can impact franchisees directly, as it affects the properties they may lease and operate from.
The gains from these sales contribute to Christian Brothers Automotive's overall financial health, which can influence the support and resources available to franchisees. It's important to note that these gains can fluctuate significantly year-to-year, as seen by the considerable difference between the 2022 figure ($13,994,953) and the 2023 figure ($3,613,496). Such fluctuations can be due to market conditions, the number of properties sold, and the terms of the sale agreements.
Prospective franchisees should consider these real estate activities as part of their due diligence, understanding that Christian Brothers Automotive's financial performance is influenced by both its franchising operations and its real estate dealings. Understanding the long-term implications of sale-leaseback agreements and how they might affect lease terms and property management is crucial for franchisees.