How is the shuttle vehicle for a Christian Brothers Automotive franchise paid for?
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) See Note 1 b) See Note 1 | CBAC (Note 1) |
| REAL ESTATE AND IMPROVE- MENTS | $0 at startup, but monthly thereafter (Note 1 and Note 2) | Monthly rent | First day of the month |
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 shuttle vehicle, which costs between $30,000 and $50,000, can be acquired through an auto finance or lease program. The shuttle vehicle wrap, which is a CBAC-approved graphic wrap applied by an approved vendor, costs between $1,750 and $3,400 and can also be financed or leased along with the vehicle. These payments are due prior to opening the franchised business.
This means that prospective Christian Brothers Automotive franchisees have the option to finance or lease the shuttle vehicle and its wrap, potentially reducing the upfront capital required. This is a common practice in franchising, as it allows franchisees to spread out the cost of essential equipment over time. However, franchisees should carefully consider the terms of the financing or lease agreement, including interest rates and repayment schedules, to ensure they can afford the ongoing payments.
It is important to note that Christian Brothers Automotive requires franchisees to purchase a CBAC-approved shuttle vehicle, and specifies acceptable models such as Honda Odyssey, Honda Pilot, and Toyota Sienna, among others. The FDD also states that pre-owned shuttle vehicles cannot be more than 4 years old at the time of purchase without prior written approval from CBAC and must be the latest design/body style available. This ensures that all Christian Brothers Automotive locations maintain a consistent brand image and provide reliable transportation for customers.
Overall, the ability to finance or lease the shuttle vehicle and wrap provides some flexibility for franchisees in managing their initial investment. However, franchisees should carefully evaluate their financial situation and consider the long-term costs of financing or leasing before making a decision.