What was the total amount of compensation expense associated with the ESOP for Christian Brothers Automotive in 2022?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
lders' equity | $ 663,061,823 | $ 576,351,339 |
Consolidated Statements of Income Years Ended December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| Revenues | $ 137,196,643 | $ 122,309,502 |
| Operating Costs and Expenses | ||
| Cost of revenues | 42,731,504 | 40,601,283 |
| Selling, general and administrative expenses | 50,507,014 | 41,565,152 |
| Compensation expense associated with ESOP | 10,121,713 | 14,206,798 |
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the compensation expense associated with the Employee Stock Ownership Plan (ESOP) in 2022 was $14,206,798. This figure reflects the cost to Christian Brothers Automotive related to its ESOP, a retirement plan in which company employees receive stock ownership.
For a prospective franchisee, this number provides insight into the financial obligations and employee benefits structure of Christian Brothers Automotive. While franchisees are not directly involved in the corporate ESOP, understanding the overall financial health and employee investment strategies of the franchisor can be valuable. A significant ESOP contribution suggests that Christian Brothers Automotive is investing in its employees' future, which can correlate with better employee retention and motivation.
It's important to note that ESOP contributions can fluctuate from year to year, as seen by the change in compensation expense between 2022 and 2023. These fluctuations can be influenced by factors such as company performance, changes in the number of employees, and adjustments to the ESOP plan itself. Franchisees should consider these figures as part of a broader assessment of the franchisor's financial management and commitment to its employees.
Reviewing these expenses in the context of overall revenues and profitability can give potential franchisees a more comprehensive understanding of how employee compensation fits into the larger financial picture of Christian Brothers Automotive. Furthermore, it's advisable for prospective franchisees to inquire about the details of the ESOP and how it benefits both the company and its employees, as this can be a factor in the overall success and stability of the franchise system.