Must parts, supplies, and equipment used in a Christian Brothers Automotive business be approved by CBAC?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
CBAC requires you to offer and sell only those products and services that CBAC has approved.
You must offer all products and services that CBAC designates as required for all CBAC's franchisees. These required goods and services are currently all goods and services necessary to perform repair and maintenance work on motor vehicles. Parts, supplies and equipment used in your CBAC business must be approved by CBAC (See Item 8).
CBAC has the right to add, delete and change the automotive services that you may or must offer, in our unrestricted discretion, and this may require you to purchase additional equipment. There are no limits on CBAC's right to do so except that the investment required of you (for such additional equipment, supplies, inventory) will not exceed $40,000 per year.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 58)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, franchisees must obtain approval from Christian Brothers Automotive for all parts, supplies, and equipment used in their business. Specifically, Christian Brothers Automotive mandates that franchisees offer and sell only those products and services that Christian Brothers Automotive has approved. This encompasses all goods and services necessary to perform repair and maintenance work on motor vehicles.
Christian Brothers Automotive retains the right to modify the automotive services that franchisees may or must offer, which may necessitate the purchase of additional equipment. However, the investment required for such additional equipment, supplies, and inventory will not exceed $40,000 per year.
Furthermore, Christian Brothers Automotive estimates that approximately 95% of the expenditures for leases and purchases of equipment and supplies in establishing an automotive repair facility are subject to sourcing restrictions. On an ongoing basis, approximately 2% of expenditures for leases and purchases of supplies are subject to these restrictions. This means franchisees must either purchase these items from Christian Brothers Automotive or from suppliers that Christian Brothers Automotive designates or approves.