In Schedule 19.3B, what is the definition of 'Total Owner Benefit' as it pertains to Christian Brothers Automotive?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Total Owner Benefit" is defined as the sum of the owner's salary and any cash distribution or bonus the owner took during the calendar year.
It does not, however, include the owner's benefit of major medical health insurance premiums, nor does it include the owner's benefit of principle reduction on any commercial debt service the owner has from the original business loan.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 62–69)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, Schedule 19.3B references 'Total Owner Benefit.' Note 3 defines this as the sum of the owner's salary in addition to any cash distribution or bonus the owner received during the calendar year. This metric is used to evaluate the financial performance of Christian Brothers Automotive franchise locations.
However, the definition of 'Total Owner Benefit' specifically excludes the owner's benefit from major medical health insurance premiums. It also does not include the owner's benefit from principal reduction on any commercial debt service related to the original business loan. Therefore, while salary, cash distributions, and bonuses are included, other forms of owner compensation and benefits tied to debt reduction are not factored into this 'Total Owner Benefit' calculation.
Prospective franchisees should understand exactly what is included and excluded from this 'Total Owner Benefit' calculation when evaluating potential income. It is important to consider that the owner's overall financial well-being may be influenced by factors outside of this specific definition, such as health insurance coverage and debt reduction. Understanding these nuances is crucial for a comprehensive assessment of the financial opportunity offered by a Christian Brothers Automotive franchise.