What was the total compensation expense associated with ESOP for Christian Brothers Automotive in 2024?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
d 2023
| 2024 | 2023 | |
|---|---|---|
| Revenues | $ 151,946,558 | $ 137,196,643 |
| Operating Costs and Expenses | ||
| Cost of revenues | 48,621,617 | 42,731,504 |
| Selling, general and administrative expenses | 59,470,531 | 50,507,014 |
| Compensation expense associated with ESOP | 5,089,319 | 10,121,713 |
| Total operating costs and expenses | 113,181,467 | 103,360,231 |
| Income from operations | 38,765,091 | 33,836,412 |
| Other Income (Expense) | ||
| Gains on sale-leaseback transactions | 3,633,369 | 2,044,287 |
| Gains on sale of leased properties | 18,119,450 | 3,613,496 |
| Interest income | 2,547,773 | 1,234,707 |
| Interest expense | (10,391,857) | (6,596,136) |
| Other income, net | 1,219,419 | (293,984) |
| Total other income, net | 15,128,154 | 2,370 |
| Net income before state income taxes | 53,893,245 | 33,838,782 |
| State Income Tax Expense | (780,073) | (1,799,431) |
| Net income | 53,113,172 | 32,039,351 |
| Less Net Income (Loss) Attributable to Noncontrolling Interest | 8,275,053 | (592,784) |
| Net income attributable to Christian Brothers | $ 44,838,119 | $ 31,446,567 |
| Automotive Corporatio |
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) for the year 2024 was $5,089,319. This figure reflects the cost recognized by Christian Brothers Automotive related to its ESOP program for that year.
For a prospective franchisee, understanding this expense is crucial as it provides insight into the company's employee benefits structure and overall financial health. The ESOP compensation expense can fluctuate year to year, as seen by the 2023 expense of $10,121,713. These fluctuations can be due to a number of factors, including changes in the company's stock value, the number of employees participating in the plan, and the terms of the ESOP itself.
It's important to note that while the ESOP expense does not directly impact the franchisee's individual financial performance, it does reflect the franchisor's commitment to employee benefits and long-term incentives. A strong ESOP can contribute to higher employee morale and retention, which indirectly benefits franchisees through a more stable and experienced workforce at the franchisor level. Prospective franchisees may want to inquire about the details of the ESOP and how it aligns with the overall company strategy.