What are the real estate and improvement costs for a Christian Brothers Automotive franchise at startup?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type Of Expenditure | Amount (Note 13, 16 and 17) | Method Of Payment (Note 14 And 15) | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| INITIAL FRANCHISE FEE | $135,000 (Note 1) $121,500 with IFA VetFran Program Discount (Note 1) | a) $85,000 b) $50,000 With Discount: a) $85,000 b) $36,500 (Note 1) | a) |
Source: Item 7 — INITIAL INVESTMENT (FDD pages 26–32)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the initial cost for real estate and improvements is $0 at startup. However, franchisees will incur monthly rent payments thereafter. Christian Brothers Automotive, or an affiliated entity, will purchase the real property and construct the building, or lease the land and building. New Christian Brothers Automotive stores will lease or sublease the property from Christian Brothers Automotive or an affiliate for a 15-year term.
The monthly base rent is estimated to be between $22,000 and $38,000, but this amount can vary based on construction and financing costs. The higher end of the range reflects locations where land, development, and construction costs are significantly higher than Christian Brothers Automotive's average costs. In addition to base rent, franchisees are responsible for other property-related expenses such as property taxes, assessments, common area maintenance fees, and property owners' association fees.
If a prospective Christian Brothers Automotive franchisee requests a location where land, development, and construction costs result in rent exceeding the disclosed range, Christian Brothers Automotive will require a signed written notice acknowledging the higher rent and agreeing to pay it. For existing Christian Brothers Automotive stores being transitioned to a new franchisee, the initial lease term and rent will match the seller's existing lease agreement, unless otherwise agreed upon. Christian Brothers Automotive may also choose to sell a site and building to a franchisee or an unrelated third party, which could result in amendments to the franchise agreement or continued subleasing.