Who is responsible for the cost of local advertising for a Christian Brothers Automotive franchise?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
Each franchise location will do all of its own local advertising, and the cost of advertising is an operating expense to the franchisee. All marketing must be done according to
Source: Item 6 — OTHER FEES (FDD pages 17–25)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, each franchise location is responsible for its own local advertising costs. The FDD specifies that these advertising costs are considered an operating expense for the franchisee. This means that franchisees must budget for and manage the expenses associated with their local advertising efforts.
This arrangement is fairly typical in the franchise industry, where franchisees often handle local marketing while the franchisor manages national or regional campaigns. However, Christian Brothers Automotive does require that all local marketing efforts adhere to the guidelines in the Confidential Operations Manual and be approved by the CBAC Marketing Department. This ensures brand consistency and quality control across all franchise locations.
In addition to local advertising, Christian Brothers Automotive franchisees are also required to contribute to a National Program and any applicable Regional Programs. As of December 31, 2023, these marketing payments totaled $12,500, which was approximately 0.46% of the average total annual revenue among Christian Brothers Automotive franchises. These funds are deposited into marketing funds managed by CBAC for those specific programs. Franchisees begin paying into these programs after six months of operation.