Does Christian Brothers Automotive negotiate volume purchase agreements with vendors?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
We may negotiate volume purchase agreements with some vendors for the purchase of services, products, equipment, fixtures and inventory needed to operate your automotive repair facility. We have negotiated purchase agreements with certain vendors to supply equipment, parts, insurance, software and start-up supplies, if geographically feasible, to our franchisees at competitive prices.
We and/or our affiliates may receive payments, such as rebates, or other compensation from suppliers on account of the suppliers' dealings with us, you, or other franchisees. If we do receive such payments from suppliers, we may use the amounts that we receive for any purpose that we deem appropriate.
Prior to opening, you must purchase certain equipment, furniture and software from CBAC that will be used to operate the franchise. This will include the equipment listed in our Confidential Operations Manual and the software described below, at a current total cost of approximately $255,000 to $280,000. The equipment is purchased by us in order to obtain better pricing than individual purchasers could obtain, mitigate supply chain risk, and coincide with construction
timelines. All equipment purchases will be rebilled to you at our cost, including any associated fees from the vendor.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 33–36)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Christian Brothers Automotive may negotiate volume purchase agreements with some vendors for the purchase of services, products, equipment, fixtures, and inventory needed to operate an automotive repair facility. They have negotiated purchase agreements with certain vendors to supply equipment, parts, insurance, software, and start-up supplies, if geographically feasible, to franchisees at competitive prices. However, Christian Brothers Automotive does not negotiate purchaser arrangements with suppliers for the benefit of franchisees, but from time to time, they negotiate with suppliers for the franchisees with the option but not the obligation to enter into these agreements.
This means that as a franchisee, you may benefit from pre-negotiated pricing on certain items, potentially lowering your costs. However, you should not expect Christian Brothers Automotive to negotiate specific deals on your behalf. The availability of these agreements may depend on your location, and you are not obligated to participate in them.
Christian Brothers Automotive also states that they and/or their affiliates may receive payments, such as rebates, or other compensation from suppliers on account of the suppliers' dealings with them, you, or other franchisees. For the year ended December 31, 2024, Christian Brothers Automotive received rebates from approved vendors in the amount of $1,477,407. These rebates are generally used to fund the costs of the Annual Franchise Convention/Meeting for franchisees, "Mastering the Difference" workshop for service managers and technicians, meetings of the Franchise Exchange Committee, and the costs to administer the purchasing program. As a franchisee, it is important to understand that while Christian Brothers Automotive may benefit financially from these arrangements, the stated intention is to reinvest those funds into franchisee support and system-wide improvements.