What was the net value of leased properties for Christian Brothers Automotive as of December 31, 2023?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
4,525,000 | | Operating lease liabilities: Current Long-term | $ 39,040,000 382,496,000 | $ 36,273,000 372,339,000 | | Total operating lease liabilities | $ 421,536,000 | $ 408,612,000 |
The amount of expense incurred during the years ended December 31, 2023 and 2022, pertaining to leases is approximately $45,584,000 and $41,964,000, respectively.
As of December 31, 2023 and 2022, the weighted-average remaining lease term was 11.07 years and 18.59 y
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the expenses incurred pertaining to leases for the year ending December 31, 2023, amounted to approximately $45,584,000. The weighted-average remaining lease term was 11.07 years, and the right-of-use assets and lease liabilities were calculated using a weighted-average discount rate of 2.44% as of the same date.
This information is crucial for prospective franchisees as it provides insight into the financial obligations Christian Brothers Automotive undertakes concerning its leased properties. Understanding the scale of lease expenses, the duration of lease terms, and the discount rates applied can help franchisees assess the financial stability and long-term planning of the franchisor.
For a potential franchisee, this data highlights the importance of property leases in Christian Brothers Automotive's business model. The significant lease expenses suggest that property costs are a major factor in the overall financial health of the company. The weighted-average remaining lease term indicates the long-term commitment Christian Brothers Automotive has to its locations, which could provide stability but also represents a fixed financial obligation. The discount rate used in calculating right-of-use assets and lease liabilities offers further insight into how the company values its lease agreements.
However, the FDD does not explicitly state the net value of leased properties. Therefore, prospective franchisees should directly inquire with Christian Brothers Automotive about the net value of their leased properties to gain a clearer picture of the company's asset and liability structure related to real estate.