Why does Christian Brothers Automotive purchase the equipment for franchisees?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Christian Brothers Automotive's 2025 Franchise Disclosure Document, franchisees are required to purchase certain equipment, furniture, and software from Christian Brothers Automotive before opening their franchise. The estimated cost for these items ranges from $255,000 to $280,000.
Christian Brothers Automotive purchases the equipment to secure better pricing than individual franchisees could obtain on their own. This bulk purchasing power allows Christian Brothers Automotive to negotiate favorable rates with vendors, potentially lowering the initial investment costs for franchisees. Additionally, purchasing the equipment themselves helps Christian Brothers Automotive mitigate supply chain risks, ensuring that franchisees receive the necessary equipment in a timely manner.
Finally, this process allows Christian Brothers Automotive to better coordinate equipment delivery with construction timelines. By managing the equipment procurement process, Christian Brothers Automotive can ensure that the equipment arrives when it is needed, streamlining the setup process for new franchisees. Christian Brothers Automotive rebills all equipment purchases to the franchisee at cost, including any associated vendor fees.