What was the net value of property and equipment for Christian Brothers Automotive as of December 31, 2023?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| Property and equipment consisted of the following at December 31: | |||
|---|---|---|---|
| 2024 | 2023 | ||
| Office equipment | $ 747,000 | $ 231,000 | |
| Furniture and fixtures | 386,000 | 363,000 | |
| Corporate office | 8,007,000 | 8,007,000 | |
| Vehicles | 136,000 | - | |
| Leasehold improvements | 1,329,000 10,605,000 | 372,000 8,973,000 | |
| Less accumulated depreciation | (626,000) | (229,000) | |
| Total property and equipment, net | $ 9,979,000 | $ 8,744,000 |
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the net value of property and equipment as of December 31, 2023, was $8,744,000. This figure represents the total value of Christian Brothers Automotive's assets, such as office equipment, furniture, fixtures, corporate office, and leasehold improvements, less accumulated depreciation.
For a prospective franchisee, understanding the franchisor's asset values can provide insights into the financial health and stability of Christian Brothers Automotive. A higher net value of property and equipment might indicate that the company has invested in its infrastructure and resources, which could benefit franchisees through better support and services.
However, it's important to consider this figure in conjunction with other financial metrics. Reviewing the depreciation expense, which was approximately $2,433,000 for the year ended December 31, 2023, helps to understand how the value of these assets is being accounted for over time. Additionally, comparing these values with previous years can reveal trends in Christian Brothers Automotive's investment and asset management strategies.
Prospective franchisees should also inquire about the specific types of property and equipment included in this valuation and how these assets contribute to the support and services provided to franchisees. Understanding the details behind these numbers can help in assessing the overall value proposition of a Christian Brothers Automotive franchise.