How much should I budget 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, franchisees should budget between $15,000 and $60,000 for insurance premiums and business licenses. These costs are typically financed with monthly payments, aligning with common practices where insurance expenses are spread out over the year. The specific amount will depend on factors such as the insurance company, projected sales volume, fees, loss history, and experience rate.
Christian Brothers Automotive requires franchisees to maintain general liability business coverage limits of not less than $2,000,000. The types of insurance coverage include, at a minimum, workers compensation, property/casualty, renter's coverage(s), errors and omissions, general liability, and life insurance (if required by the lender). If a franchisee finances any aspect of their business, the lender may require additional insurance coverage, further impacting the overall cost.
Prospective franchisees should consider that these insurance and licensing costs can vary significantly. It is advisable to consult with multiple insurance providers to obtain quotes and understand the specific coverage requirements for their location and business operations. Additionally, understanding the local business license requirements and associated fees is crucial for accurate budgeting. Group health insurance for employees is optional, while disability, dental, vision, or supplemental insurance for the franchisee or employees are considered Unapproved Expense Items for calculating Split Profits.